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Key projects and capital expenditures

In 2016, a new storage chamber (K-5) was placed in service at the Kosakowo CUGSF. After the President of URE issues a decision to amend the licence, the working capacity of that storage site will increase to 145.5 mcm. The target working capacity of the Kosakowo CUGSF, following completion of the still ongoing construction project, will be 250 mcm. Steps were also taken to secure administrative decisions necessary to further expand the Kosakowo CUGSF’s working capacity to 655.7 mcm. In 2016, acting on behalf of and for PGNiG, GSP obtained a decision issued on July 21st, 2016 by the Regional Director for Environmental Protection in Gdańsk, specifying the environmental conditions to be met by the project ‘Extension of the working capacity of the Kosakowo Cavern Underground Gas Storage Facility to 655.7 mcm, including construction of storage chambers, a leaching installation, surface infrastructure and internal pipelines’. Also in 2016, the extension of the Brzeźnica UGSF’s working capacity was completed; after the President of URE issues a decision to amend the licence, its working capacity will increase to 100.0 mcm. In February 2016, GSP made available, for third-party access, new storage capacities at the Kawerna GSF achieved through the extension of the Mogilno CUGSF and Kosakowo CUGSF and through geological processes in the salt dome on the Mogilno CUGSF site. Third-party access has been provided under contracts for long-term storage service or short-term storage service on an interruptible basis, in packages, flexible packages or as stand-alone services.