Development prospects
Development prospects in Poland
Procurement of natural gas
In the long term, PGNiG will focus on meeting its obligations under the long-term contracts with Gazprom Export and Qatargas with respect to the minimum offtake volumes. If an unforeseen surge in demand occurs, the Company will purchase natural gas under short-term contracts from the neighbouring countries or on the LNG market, wherever more favourable prices are available.
Business development in the CNG and LNG segments
New offers have been prepared for customers, with prices based on a flexible market-linked formula, and work commenced to investigate the possibilities of linking the offered LNG/CNG price to prices of petroleum fuels. Moreover, the following initiatives are under way:
- Small LNG Regasification Facilities for businesses – construction of LNG stations to serve business customers (based on a one customer – one station model), if the expected consumption volume and profile guarantees economic viability of the project.
- LNG bunkering – activity in the market of LNG supply for use by ships, including submission of an application for EU co-financing under the Connecting Europe Facility;
- CNG stations for municipal transport – selective approach to customers, maintaining the existing stations and new projects subject to economic viability.
Storage
With respect to the Kosakowo CUSGF expansion, work will continue on construction of five Cluster B chambers and leaching of the K-6, K-8 and K-9 caverns. The contractual deadline for completion of all works related to the construction of the five Cluster B chambers falls in 2021. Further steps will be taken to secure administrative decisions necessary to expand the Kosakowo CUGSF’s working capacity to 655.7 mcm.
Development prospects abroad
PST is planning to further expand its business, focused on selling electricity and gas to end customers and in wholesale. In the retail area, the company will be seeking to considerably expand its customer base. Furthermore, PST entered into cooperation with Premio Energie GmbH as its trading partner. Under the arrangement, Premio Energie will offer exclusively PST products as their sole reseller. As part of its trading activity, besides being an active player in OTC and exchange markets, PST intends to develop a business model based on cooperation with municipal entities as well as gas and electricity trading companies, by offering them standard and structured trading products and auxiliary services related to trading (for instance balancing services).
Further automation of processes is planned as part of the trading operations in order to ensure compliance with the requirements imposed by institutions whose role is to implement the REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) and EMIR (European Market Infrastructure Regulation). In retail sales, PST’s IT systems and internal processes are of vital importance from the point of view of retail sale objectives.
As part of its strategy to increase activity on foreign markets, PGNiG intends to continue its natural gas sales operations in Ukraine. PGNiG is also keeping a close eye on the negotiations between OGP Gaz-System SA and Ukrtransgaz concerning extension of the interconnector capacity between Poland and Ukraine.
