Wholesale/Trading
In order to accommodate domestic demand for natural gas, the PGNiG Group produces gas from its own reserves and purchases gas from abroad. The Group’s own production covers around 30% of total demand, with the balance covered by imports, mainly from countries east of Poland (with OOO Gazprom Export being the largest supplier). The updated strategy sets the following strategic objectives:
- To maximise the use of existing infrastructure and to secure sufficient capacities;
- To increase the flexibility of natural gas supplies;
- To develop domestic/international multi-commodity trading and international sales.
Actions taken in an effort to ensure uninterrupted and secure supplies of natural gas include:
- Using spare capacities of the LNG terminal, reserving capacities at the Lasów and Cieszyn interconnectors and capacities available in the virtual reverse flow on the Yamal pipeline;
- Renegotiating long-term contracts, increasing their flexibility and changing the purchase portfolio structure by increasing the share of volume purchased under short-term contracts;
- In the future, launching international trading in gas and crude oil to support the processes of diversifying gas supply sources and risk management, while securing competitive selling prices. Our ability to participate in the European market will be particularly important if a gas surplus occurs in Poland.
Our achievements to-date
With a view to securing an appropriate structure of import contracts, in 2011 PGNiG executed several new gas supply contracts.
In May 2011, PGNiG and Vitol SA concluded an Individual Agreement for natural gas supplies to a cross-border terminal on the Polish-Czech border in the Cieszyn area. Under the agreement, approximately 550m m3 of gas per year will be delivered in the period from October 1st 2011 to October 1st 2014. The gas is to be supplied via a newly built interconnector between the gas systems of Poland and the Czech Republic.
In May 2011, PGNiG and VNG-Verbundnetz Gas AG executed an Individual Agreement for summer gas supplies to the Lasów cross-border terminal. Under the agreement, gas was supplied in the period from May 17th to July 3rd 2011.
In June 2011, PGNiG and VNG-Verbundnetz Gas AG executed an Individual Agreement for summer gas supplies to the Lasów cross-border terminal. Under the agreement, gas was supplied in the period from July 3rd to September 30th 2011.
Also in 2011, PGNiG reserved transmission capacity in the German transmission system in order to transport the gas purchased on the VTP Gaspool platform. The transmission capacities were reserved for the period October 1st 2011–September 30th 2016 (Lasów cross-border terminal), and for the period October 1st 2011–October 1st 2014 (Gubin cross-border terminal). In September 2011, PGNiG executed three short-term EFET standard contracts (European Federation of Energy Traders) on the VTP Gaspool platform for delivery of small amounts of natural gas.
In order to transport the volumes of gas purchased on the German market (at the VTP Gaspool platform), PGNiG and OGP GAZ-SYSTEM SA executed a short-term agreement for the provision of virtual reverse flow services on the Yamal gas pipeline in the period from November 1st 2011 to January 1st 2012. The gas was delivered on the basis of a series of separate transactions executed by PGNiG Sales & Trading GmbH.
PGNiG Sales & Trading GmbH of Munich was established to engage in international trading in natural gas and crude oil. Through this new company, PGNiG intends to launch gas trading on the European market starting in 2012, offering its own gas produced from the Skarv field in Norway.