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Development prospects

As regards development of natural gas distribution and new services, PSG is planning to pursue its Strategy for Development of the PSG Distribution Network in 2017−2026 and prepare a Draft Development Plan for 2018−2022. Specific projects will include extending the functionality of the gas distribution system using the Power to Gas (P2G) technology. The P2G process involves conversion of surplus electricity into hydrogen (H2) and, following methanation, into synthetic natural gas (SNG). Indirect (low-emission) energy carriers may be stored in the gas grid, which has large storage capacities and high flexibility, and then be used in accordance with the business needs of customers, e.g. to generate power in fuel cells or high-efficiency gas turbines. The gas grid will become a sub-system of the future integrated and convergent Smart Power Grid.

Description of planned investment projects:
Project category Expenditures in 2017 (PLNm)
Gas mains and service line extensions 774
Network upgrades 463
Other 432
Total 1,669

Based on the Strategy for Development of the PSG Distribution Network in 2017−2026, which is currently under preparation, PSG will continue to pursue gas network construction and expansion projects, including with large-scale application of LNG technologies. In the coming years, the company intends to implement an investment model that would promote growth in the volume of transported gas and accelerate its key investment projects. PSG is monitoring the market for ground-breaking technology innovations in the energy sector as well as administrative incentives introduced to support the development of low-emission energy generation relying on environmentally friendly sources. Examples of such administrative incentives include the Clean Transport Promotion Package, which comprises three documents: the Plan for Development of an Electric Vehicle Network, the National Framework Policy for Development of Alternative Fuel Infrastructure and the Act Establishing a Low-Emission Transport Fund. Pending implementation of the Clean Transport Promotion Package, PSG is engaged in cooperation between the PGNiG Group and fuel sector operators focused on developing the alternative fuel infrastructure and will create conditions in which vehicle users can be provided with an appropriate offering with respect to CNG/LNG filling.