PGNiG Group is an industrial and commodity holding company. PGNiG’s business comprises exploration for and production of natural gas and crude oil. Through its key companies, PGNiG is also active in the area of import, storage, sale and distribution of gas and liquid fuels, as well as heat and electricity generation and distribution. As a result, all areas of our business rely heavily on access to natural capital which determines the Group’s financial performance.
The core business of the Group is hydrocarbon exploration and production. To ensure uninterrupted supply of hydrocarbons to its retail and business clients, the Group invests in:
- exploration for new deposits and acquisition of production licences,
- field development projects.
The Group acquires and sells commodities from its own sources, but also purchases commodities on the market:
- natural gas (including LNG) purchased from third parties,
- hard coal purchased for the Generation segment.
Natural gas and crude oil prices determine the performance of individual segments to a large extent. To secure favourable gas prices in international transactions, the Group enters into short-, mid- and long-term contracts as a guarantee of uninterrupted and market priced supply of natural gas.
Environmental costs are an inherent part of the Group’s operations. Seeking to minimise its adverse environmental impacts, in 2021 the Group purchased emission allowances for 5,905 thousand Mg CO2 (representing the additional volume of allowances the PGNiG Group had to purchase given its 2021 allocation of 1,358.3 thousand Mg).
The Group also pays costs of certification, environmental software and mandatory environmental measurements.