Segment’s strategy

The Group’s portfolio of gas customers grew as PGNiG expanded its presence in the neighbouring countries. PGNiG also entered into new contracts for the sale of gas in Poland, which were an effect of the Company’s consistent pursuit of its policy of high quality customised sales. PGNiG keeps changing to meet the needs and expectations of end users, offering them discount schemes, which were well received by the largest customers and delivered the expected results. On September 1st, 2016, PGNiG launched dual fuel (electricity and gas) plans for households. From September to December 2016, PGNiG OD successfully met its dual fuel sales targets, with more than 13,100 new customer contracts by the year end. The growing effectiveness of the sales force and the constantly expanding product mix helped PGNiG to acquire new and win back old business customers (a total of 1,312 in 2016).

PGNiG seeks to ensure technical possibilities for sourcing gas from markets other than east of Poland. The Company’s key objectives include security of gas supplies and finding new sources and directions of gas imports, including via the LNG Terminal and the Norwegian Corridor. As part of its diversification efforts, PGNiG, supported by the Polish government, is holding talks with Norway and Denmark about connecting the Polish gas system with the Norwegian Continental Shelf. Such connection would enable delivery of natural gas from the upstream assets already held by PGNiG in Norway and would ultimately help achieve natural synergies between individual segments of the PGNiG Group. Notably, PGNiG has by now secured a long-term, diversified portfolio of gas production assets in Norway, which it will be able to exploit until 2030. In 2016, PGNiG entered the LNG wholesale market as gas was first delivered to the Terminal in Świnoujście under a long-term contract with Qatargas. PGNiG reserved approximately 60% of the Świnoujście Terminal capacity. In another step to consolidate its position on the gas supply market, on June 28th, 2016 PGNiG set up an LNG trading office in London. Ultimately, the London office is to become the PGNiG Group’s international LNG competence centre and the main trading office for short- and medium-term contracts for liquefied gas.

A strategic objective set for GSP is to ensure equal and non-discriminatory access to storage facilities to all interested entities. Therefore, GSP offers all the available storage capacities as required under Regulation of the European Parliament and of the Council on conditions for access to the natural gas transmission networks, in accordance with the Rules of Storage Services and the relevant tariff. As the PGNiG Group is responsible for national energy security, GSP increases the TPA storage capacities once successive stages of the UGSF expansion project (carried out by PGNiG) are completed. In 2016, additional storage capacities of 126.45 mcm and 6.6 mcm, respectively, were made available at the Mogilno and Kosakowo cavern facilities.