STORAGE

Operator Systemu Magazynowania Sp. z o.o. executed in 2015 the following planned investment projects were executed:

In March 2015, extension of the Wierzchowice UGS was completed. After completion of the construction work and acceptance of the extended storage facility, a working capacity totalling 1.2 billion cubic metres became available in 2014. In 2015, the electrical section underwent start-up and the project was settled.
Building of three caverns (Z-15, Z-26 and Z-17) at the Mogilno UGSC was completed, adding a total of 200 million cubic metres in working capacity; the facility’s working capacity was thus increased to 600.7 million cubic metres.
Construction work was continued on the K-5 cavern at the Kosakowo UGSC, with a target working capacity of at least 25 million cubic metres. The work is scheduled to end in 2016.
Extension work was continued on the Brzeźnica UGS, increasing its working capacity from 65 to 100 million cubic metres. The work is scheduled to end in 2016.
Construction work was continued on three caverns (K-6, K-8 and K-9) of Cluster B at the Kosakowo UGSC. The construction of Cluster B is scheduled to end in 2016.
Steps were taken to secure EU funds supporting the construction of further two or three caverns as part of the Mogilno UGSC extension to 800 million cubic metres of working capacity.

Under the European Union’s Infrastructure and Environment Operational Programme 2007−2013, projects providing for the construction/extension of underground gas storage facilities (Strachocina UGS, Husów UGS and Wierzchowice UGS) were co-financed with a total amount of PLN 589m.

In addition, EU funds of approximately PLN 114.7m were granted for the Kosakowo UGSC construction project.

Regulated activities

Access to working capacities

All working capacities are made available by OSM on the TPA (third party access) basis. In 2015, following extension by PGNiG of its gas storage facilities, OSM made available, in the form of packages, new working capacities totalling 137 million cubic metres (1,503 GWh) on a continuous basis and 110 million cubic metres (1,207 GWh) on an interruptible basis.

As at December 31st 2015, OSM operated storage facilities with a combined capacity of 2,795.6 million cubic metres (30,673 GWh), of which 2,749 million cubic metres (30,162 GWh) is covered by long-term services contracts.

Location of underground gas storage facilities

Tariff

Until July 1st 2015, OSM’s settlements related to the provision of storage services were based on the rates provided for in Gas Fuel Storage Tariff No. 1/2014, approved by a decision of the President of the Energy Regulatory Office on July 2nd 2014. On May 21st 2015, the President of the Energy Regulatory Office approved Gas Fuel Storage Tariff No. 1/2015, effective from July 1st 2015 to March 31st 2016. The new tariff covers storage services provided through the following Storage Facility Groups (SFG): Kawerna SFG (Kosakowo and Mogilno underground gas storage facilities) and Sanok SFG (underground gas storage facilities in Husów, Strachocina, Swarzów, Brzeźnica and Wierzchowice).

Compliance Programme

OSM’s operations are conducted in line with the programme for ensuring non-discriminatory treatment of storage facility users (“Compliance Programme”), approved by a decision of the President of the Energy Regulatory Office dated May 14th 2014.

Non-regulated activities

Key projects run by OSM in 2015 as part of its non-regulated activities (construction projects) included the construction and extension of two underground gas storage cavern facilities owned by PGNiG: Mogilno UGSC and Kosakowo UGSC. OSM is the only Polish company specialising in comprehensive construction of underground gas storage cavern facilities, from design to construction and mining work.

In 2015, OSM’s construction projects also included gas transmission lines, but OSM decided to discontinue its activities in that segment by completing the running projects and signing no new contracts.