40
PGNiG
Key Developments in 2010:
••
execution of an annex to the contract with
Gazprom Export for the supplies of gaseous
fuel, increasing the maximum annual volume of
imported gas and granting PGNiG a discount for
deliveries made in 2010 – 2014;
••
launch of the underground storage facility for
nitrogen-rich gas in Bonikowo;
••
increase in mandatory stocks of natural gas,
the use of which is within the discretion of the
Ministry of Economy, to 20 days’ worth of aver‑
age daily imports (530 million cubic metres) as of
October 1
st
2010.
The Trade and Storage segment sells imported
natural gas and natural gas produced from
domestic felds. Imported gas is sourced mainly
from countries lying east of Poland. Natural gas
is sold through the distribution and transmission
networks, and its sale is regulated by the Energy
Regulatory Offce (“URE”). For its own needs, the
segment uses three underground gas storage
facilities (in Mogilno, Wierzchowice, and Husów).
Financial Performance in 2010
In 2010, the Trade and Storage segment recorded
PLN 815m in net operating proft, an improvement
of PLN 703m relative to 2009. The improvement
was attributable to higher proftability of high-
methane gas sales, following a 6% decrease in the
price of imported gas, due primarily to a weaker US
dollar. The segment’s improved performance was
also the result of the PLN 158m discount on gas
supplied under the contract with Gazprom-Export.
Tariff Policy
Prices at which PGNiG sells natural gas are regu‑
lated by the Energy Regulatory Offce (URE). The
URE’s regulatory powers include the right to ap‑
prove gaseous fuel tariffs and control their applica‑
tion in terms of compliance with the Polish Energy
Law, to analyse and review costs which energy
companies consider relevant for the calculation
of tariff prices and charge rates, and to exercise
overall supervision over energy companies. The
tariff prices and charge rates are crucial to the
ability to generate satisfactory revenue, taking into
account the justifed costs and return on capital
employed. The methodology applied to prepare
tariffs is based on the determination of prices and
charge rates against forecast costs and gas sales
targets, and the calculation takes into account the
costs of gas from all sources, i.e. both imported
and domestically produced gas.
PGNiG supplies gaseous fuel to customers connect‑
ed to the transmission grid and those connected
to the distribution network, under comprehensive
contracts which defne:
••
prices, subscription fees and rates of network
charges applicable to settlements with custom‑
ers receiving gaseous fuels from the transmis‑
sion grid;
••
prices, subscription fees and rates of network
charges applicable to settlements with custom‑
ers receiving gaseous fuels from the distribution
networks;
••
the manner of determining price reductions for
failure to maintain the quality parameters for
gaseous fuels and quality standards in customer
service, and the manner of determining charges
for exceeding the contractual capacity.
Trade
and Storage
I n 2 0 1 0 , s a l e s o f n a t u r a l g a s r e a c h e d a r e c o r d h i g h
l e v e l o f 1 4 . 4 b i l l i o n c u b i c me t r e s . T h e g a s wa s
s u p p l i e d t o P G N i G ’ s 6 . 6 m i l l i o n c u s t ome r s , i n c l u d i n g
h o u s e h o l d s a n d i n d u s t r i a l c u s t ome r s . A r o u n d f o u r
t h o u s a n d o f P G N i G ’ s emp l o y e e s wo r k e d o n e n s u r i n g
a n u n i n t e r r u p t e d a n d s e c u r e s e r v i c e .
Mission
Key Figures
Key Events
Letter from the
President of the
Management
Board
Management
Board
Letter from the
Chairman of the
Supervisory Board Supervisory Board
PGNiG on the Stock
Exchange
Strategy for the
PGNiG Group
until 2015
Exploration
and Production