Imports

PGNiG is the largest importer of natural gas to Poland. Gas is imported from Russia, Germany and the Czech Republic. The existing gas infrastructure supports natural gas imports from:

  • the East – through the cross-border points in Drozdovitse and Zosin (on the Polish-Ukrainian border), Kondratki, Vysokoye and Teterovka (on the Polish-Belarusian border);
  • the West – through the interconnector terminal point in Lasów;
  • the South – through the cross-border point in Branice or, alternatively, in Głuchołazy, and a newly built interconnector in the Cieszyn area, connecting the gas systems of Poland and the Czech Republic.

In 2011, ­PGNiG imported 10.915 bn m³ of high-methane gas, including 9.34 bn m³ (85.53%) from Russian supplier OOO Gazprom Export, approximately 716 m m³ (6.56%) from Verbundnetz Gas AG (VNG) of Germany, approximately 397 m m³ (3.64%) from Vitol SA of Switzerland, and approximately 380 m m³ (3.48%) from ­PGNiG Sales and Trading.

In 2011, ­PGNiG made its first natural gas deliveries using virtual reverse flow on the Yamal gas pipeline:

  1. PGNiG requested Gaz-System for a short-term access to the virtual reverse flow service on the Yamal gas pipeline in the period from November to December 2011;
  2. ­PGNiG requested Gaz-System for the virtual reverse flow service on the Yamal gas pipeline in the period from January 2012 to December 2015. Following allocation of the available capacity of the Polish section of the Yamal pipeline to the long-term reverse flow service, Gaz-System and ­PGNiG entered into an agreement on the provision of the reverse flow service on an intermittent basis.

The contracted capacities were used to transport natural gas purchased on the German market (VTP Gaspool), which is relatively less expensive than gas purchased under the Yamal Contract.

Following the upgrade of the existing cross-border point in Lasów on the Polish-German border (two-way connection), the capacity to import natural gas from Germany was increased by approximately 0.5 bn m³ per year and reached a total of approximately 1.5 bn m³ per year. The increased throughput capacity at the Lasów point became available in January 2012.

In the third quarter of 2011 a new intersystem connector to the Czech gas system in the Cieszyn area was launched, with an annual throughput capacity of approximately 0.5 bn m³. It is another intersystem connector linking Poland to the gas system of the European Union.

Intersystem connectors are very important for Poland’s energy security and may also be used as potential sources of emergency supplies. Further, interconnectors support free trade exchange between the EU countries and foster greater economic integration of the member states.

Polskie LNG (a wholly-owned subsidiary of OGP Gaz-System SA) is building an LNG terminal in Świnoujście. In the first phase (until 2014), the terminal will have an annual throughput capacity of 5 bn m³. The contracted supplies of 1 m tonnes of liquefied natural gas annually (approximately 1.335 bn m³ of natural gas) are due to commence in mid-2014.

Sales

­PGNiG is the largest domestic seller of natural high-methane and nitrogen-rich gas fed into the transmission and distribution networks. Gas trading is regulated by the Polish Energy Law, with prices established based on tariffs requiring approval by the President of URE. In 2011, ­PGNiG sold 14.38 bn m³ of natural gas, including 13.70 bn m³ (95.3%) sold by the Trade and Storage segment.

The sales of natural gas in Poland are based on the following two systems:

  • the high-methane gas network used for imported gas, gas produced from fields in southern Poland, as well as gas fed into the network by the denitriding facilities, produced from fields in western Poland;
  • the nitrogen-rich gas network used to route gas from the production sites to the denitriding facilities and to customers from fields located in the Polish Lowlands.

In terms of sales volume, ­PGNiG’s largest customers were the chemical, petrochemical and metallurgical industries, as well as households. Households made up the largest group of customers for natural gas, accounting for approximately 97% of the entire customer base (approximately 6.5 m). Their share in the total volume of sales at the Trade and Storage segment was approximately 27.2%.

In March 2011, a comprehensive agreement for the supply of gas fuel was executed with Elektrociepłownia Stalowa Wola SA The fuel will be used to fire a CCGT unit. The planned annual offtake is approximately 540 m m³. The agreement was concluded for 14 years, starting from the launch of deliveries. Performance of the agreement will commence upon fulfilment of certain conditions precedent. The value of the agreement throughout its term is estimated at approximately PLN 9.7 bn.

Trade and Storage

In November 2011, ­PGNiG and Grupa LOTOS SA executed an annex to the comprehensive gas fuel supply agreement of June 16th 2010. Under the annex, the starting date for gas fuel supplies to Grupa LOTOS SA was changed from December 16th 2011 to April 30th 2012. The annex also changed the planned target annual volume of natural gas deliveries from 447 m m³ to 585 m m³. The estimated value of the agreement over the period of five years is approximately PLN 3.2 bn.

Transit

PGNiG is a shareholder in EuRoPol GAZ, the owner and operator of the Yamal pipeline within the territory of Poland. Gas produced in northern Russia is transported over the Yamal-Europe Pipeline with a total length of 4,196 km to countries of Western Europe. The Polish section of the pipeline is 682 km long, and its diameter is 1.4 m. Two interconnector terminal points along the pipeline are located in Włocławek and Lwówek Wielkopolski. In 2011, the volume of natural gas transmitted in the Yamal pipeline through the territory of Poland was the same as in 2010 and stood at 27.7 bn m³.