Prospects for development

In 2015, PSG adopted the Strategy for 2015–2022, whose key objective is to enhance the company’s value by maximising EBITDA. The strategy builds on the PGNiG Group’s Strategy to ensure maximum value of the network infrastructure.

PSG also intends to consistently leverage the opportunities opening up in its business, regulatory and social environment with regard to:

• introduction of new regulations supporting the development of cogeneration and commercial power plants;
• changes in the regulatory framework that would facilitate implementation of the company’s key investment projects;
• growing demand for natural gas from large and medium-sized customers (heat plants and CHP plants, manufacturing and industrial plants, service centres);
• reduction, in the mid term, of gas fuel prices due to liberalisation of the gas market and situation in the global markets, stimulating an increase in demand for gas and consequently for distribution services;
• influencing the formation of the gas market (for instance through participation in regulatory consultations with the Energy Regulatory Office and the Ministry of Energy);
• obtaining EU co-financing for PSG’s key investment projects and deployment of innovative technologies;
• further network roll-out and connection of customers in regions characterised by poor gas supply infrastructure (e.g. central Poland, northeastern regions of Poland), also based on the LNG technology.

In 2016, PSG will continue to pursue projects consisting in construction and extension of gas networks and connection of new customers, including projects based on the LNG technology.

In the coming years, the company wants to implement an investment model promoting accretion in the volumes of transferred gas and speed up its key investment projects. In order to carry out its plans, PSG intends to rely on external financing, for example under the Infrastructure and Environment Operational Programme in the new multiannual financial framework 2014−2020. Particular emphasis will be placed on intensifying the processes aimed at finding new customers for gas, and on improving the reliability of gas networks and security of gas supplies.

The company is also planning to develop its research, development and innovation activities (R+D+I). These activities will focus on research into ways of improving the reliability, ensuring safety and raising efficiency of the gas infrastructure, and will be conducted mainly through demonstration projects (promoted in the current multiannual financial framework 2014−2020), as well as based on any other model allowing the company to tap into external funds. Such approach will enable the company to optimally utilise the EU funding and take advantage of certain tax incentives introduced as of January 1st 2016 to support innovation.

Moreover, the company has been looking for opportunities to commercialise new innovative technologies and create innovative services and thus expand into new markets or increase market share. PSG has been analysing issues (both from the technological and regulatory point of view) related to broadening the functionality of its gas infrastructure to make it capable of transporting natural gas with an admixture of other gases, including biogas, synthetic natural gas (SNG), CO₂ and hydrogen. An upgrade of the gas networks to so expand their functionality would permit the company to launch new services and connect customers from the power generation sector (stabilisation of the power system, fuel supply to portable and local electrical appliances powered by fuel cells), as well as the automotive sector and other industries where hydrogen is used in production processes.