Business Model

The segment’s operations consist in exploring for and extracting natural gas and crude oil from deposits, starting from geological surveys, geophysical research and drilling, to development and production of hydrocarbons from gas and oil fields. Its core activities are carried out in Poland, Pakistan, the United Arab Emirates and on the Norwegian Continental Shelf, while support activities are conducted worldwide. The segment also relies on storage capacities available at the Bonikowo and Daszewo UGSFs.

The segment includes, among others, the following companies: PGNiG, PGNiG Upstream Norway AS, PGNiG Upstream North Africa B.V., Geofizyka Toruń Sp. z o.o., and EXALO Drilling S.A.

In Poland, where the PGNiG Group is the largest natural gas supplier, the segment sells natural gas produced from domestic fields as well as imported gas. PGNiG is the leader of natural gas trading on the Polish Power Exchange. Through PST, the PGNiG Group is developing its foreign operations. The Group’s foreign sales markets include Germany, the Netherlands, Belgium, Austria, Norway, Denmark, the United Kingdom, France, the Czech Republic, Slovakia, Ukraine, Lithuania and Hungary. The segment also trades domestically in electricity, certificates of origin for electricity, CO₂ emission allowances, and crude oil (since 2018, through PST). In order to conduct trading activities on the global LNG market, the company has established a branch in London. The segment operates seven underground gas storage facilities and provides a ticketing service for gas storage to external customers.

The segment includes the following companies: PGNiG, PGNiG Obrót Detaliczny sp. z o.o., PGNiG Sales and Trading GmbH, PST Europe Sales GmbH and Gas Storage Poland sp. z.o.o.

The segment’s principal business activity consists in the delivery of high-methane and nitrogen-rich gas, as well as of small amounts of coke-oven gas, over the distribution network to retail and corporate customers. The segment is also engaged in extending and upgrading the gas network and connecting new customers. PSG is responsible for natural gas distribution. As the Distribution System Operator, the company operates in all regions of Poland. Being the owner of the majority of Poland’s gas distribution network and gas service lines, PSG enjoys a dominant market share.

The segment’s business consists in the production of heat and electricity, distribution of heat, and execution of large, mainly gasfired, projects in the power sector. The centre of competence in this area at the PGNiG Group is the PGNiG TERMIKA Group, comprising PGNiG TERMIKA (and its subsidiaries) and PGNiG TERMIKA EP (and its subsidiaries).

This segment comprises operations which cannot be classified into any of the segments listed above, i.e. the functions performed by the PGNiG Corporate Centre, engineering design and construction of structures, machinery and equipment for the extraction and energy sectors, hospitality and insurance services, as well as support services for companies operating in other segments.

The segment’s ambition within the Corporate Centre is to increase its involvement and effectiveness in implementing R&D&I projects, including projects based on environmentally friendly fuels such as hydrogen, biogas and RES.

The segment includes the following companies: PGNiG, PGNiG Gazoprojekt S.A., Geovita S.A., PGNiG Serwis Sp. z o.o., PGNiG Technologie S.A. and Polski Gaz TUW.