Where does the obligation to hold mandatory gas stocks come from?

The obligation to hold mandatory gas stocks follows from the Act of February 16th 2007 on stocks of crude oil, petroleum products and natural gas, the principles of proceeding in circumstances of a threat to the fuel security of the state and disruption on the petroleum market.

How can I fulfil my gas-stocking obligation?

An obligated entity may purchase storage services from a local or foreign gas storage system operator, and build gas stocks based on the reserved storage capacities. If gas stocks are to be held outside of Poland, the obligated entity is additionally required to reserve sufficient transmission capacities to enable gas transport to the Polish grid. As an alternative, the obligation may be fulfilled by contracting another entity to hold the mandatory gas stocks on a contract basis, in Poland or abroad. Maintaining mandatory stocks for another entity is called the ticketing service.

What are the advantages of the ticketing service provided by PGNiG?

Signing a contract for the provision of the ticketing service with PGNiG allows the Customer to meet its gas-stocking obligations in accordance with the applicable Polish regulations.

PGNiG’s service is competitive compared with other solutions available on the market:

  • The service is tailored to the Customer’s volume needs. To compare, Gas Storage Poland offers only standard storage volume options.
  • The ticketing service provided by PGNiG is also flexible in terms of contract duration – it is offered for a period of one gas year (with optional extension to three gas years), which is consistent with the mandatory stock holding period (October 1st – September 30th).
  • The Customer is not required to enter into an agreement with the gas storage system operator to buy services necessary to inject, maintain, and withdraw the obligated stocks.
  • Moreover, the Customer does not have to reserve any transmission capacities to ensure that the obligated stocks can be delivered within 40 days throughout the entire storage period, which would be necessary if the stocks were stored abroad.

The service is a comprehensive solution – the Customer may choose to authorise PGNiG to fulfil most of its disclosure requirements, laid down in the Act on Stocks, towards the Minister of Energy, President of URE, Gas Storage Poland (Storage System Operator) and OGP Gaz-System (Transmission System Operator).

What is the duration of the ticketing contract?

PGNiG may provide the ticketing service for one, two, or three gas years.  The service provision period is consistent with the mandatory stock holding period (October 1st – September 30th).

The contract is subject to approval by the President of URE and is concluded for one gas year. Contract duration is closely correlated with the mandatory stock holding period as defined in the President of URE's decision in this respect. If the Customer accepts the Price List for a period of more than one year, then such Customer will be obliged to conclude the Contract also for subsequent gas year(s), as specified in the Price List.

Submission of a scheme participant declaration does not entail any obligations or costs for the Customer.

Are there any minimum/maximum gas volumes to be stored under the ticketing service?

PGNiG tailors the ticketing service to its Customers' needs. The volume of gas to be stored depends on the availability of gas storage and transmission infrastructure.

Where can I find detailed terms and conditions of the ticketing service?

Rules governing provision of the ticketing service, form of the Contract and form of the Price List are available at http://en.pgnig.pl/what-is-ticketing-service, while the service costs calculator is available at http://en.pgnig.pl/ticketing-service-calculator.

Please note that because the ticketing contract is subject to approval by the President of URE, its final wording may differ from the draft.

What does the cost of the ticketing service depend on?

The cost of the ticketing service depends on a number of factors, but mainly on the selected service provision model and contract duration. The price is based on market rates and is competitive compared with services offered by the Storage System Operator.

At what price can Customers buy natural gas in the “Customer's gas” option?

The selling price of natural gas corresponds to market prices in the period when gas was injected and/or when gas stocks were replenished. Detailed calculation of the selling price will be presented in the Price List on a case-by-case basis.

If I opt for using the ticketing service offered by PGNiG, what obligations do I have to fulfil?

The Customer is obligated to calculate the volume of the mandatory gas stocks and submit it for approval to the President of URE. After receiving a relevant decision from the President of URE, the Customer will be required to deliver it to PGNiG.

The Customer may authorise PGNiG to represent the Customer before the Minister of Energy, the Energy Regulatory Office (URE), Gas Storage Poland (SSO) and the TSO in matters related to the performance of the ticketing service contract.

First-time customers will be additionally required to provide basic information about their company to allow PGNiG to verify its new trading partners and evaluate their creditworthiness. This is PGNiG’s standard procedure for new accounts.

The Customer may be required to create security for payments under the contract.

Upon signing the contract with PGNiG, do I still have to contact the Energy Regulatory Office or the Transmission System Operator with regard to the contract performance?

When joining the scheme, the Customer may authorise PGNiG to represent the Customer before the Minister of Energy, the Energy Regulatory Office, Gas Storage Poland (SSO) and the TSO in matters related to the performance of the ticketing service contract. The ticketing service may thus be provided on a “one-stop shop” basis, where the Customer’s only obligation is to secure the President of the Energy Regulatory Office’s approval of its mandatory stock volume.

How is the mandatory stock volume calculated?

Under the Act on Stocks, the volume of mandatory stocks of natural gas must be equal to at least 30-day average daily gas imports determined based on the gas volumes imported in the period from April 1st of the preceding year to March 31st of the current year.

In the case of entities that will become obligated to maintain mandatory gas stocks for the first time from October 1st 2017, the mandatory stock volumes will be determined based on their gas imports between January 1st and June 30th 2017.

Is LNG also covered by the obligation to maintain mandatory stocks?

Yes, LNG is also covered by this statutory obligation, since it is defined as natural gas in the Act on Stocks. If the LNG terminal is used, the obligation to hold mandatory stocks is imposed on entities which use the regasification or cargo handling services and whose regasified gas is fed to the transmission network or transferred to other means of transport.

In what circumstances are mandatory stocks of natural gas released?

Under the Act on Stocks, mandatory stocks of natural gas fall in the remit of the minister competent for energy. Stocks may be released by the TSO upon the minister’s approval in the event of any disruption in natural gas supply to the gas system, unexpected damage to or destruction of the gas grid affecting the gas system security, or an unforeseen increase in natural gas consumption.

How is gas delivered to Customers after expiry of the ticketing contract?

Depending on the service model selected by the Customer, after expiry of the service term, the gas previously stored as mandatory stock may be delivered to the Customer at an OTC point or repurchased by PGNiG.