Exploration and Production
The Exploration and Production segment covers the entire process of oil and gas production starting from geophysical surveys prior to the exploration phase until field operation and product preparation for marketing. Our presence in the gas and oil production segment makes PGNiG a competitive player on the liberalised gas market. A portion of the gas we sell is produced at costs lower than the prices of imported gas. Thus, we may to a certain degree stave off the effects of rises in imported gas prices, driven by growing prices of oil derivatives to which the gas prices are index.
Trade and Storage
The Trade and Storage Segment sells imported natural gas and natural gas produced from the domestic reserves. The imported gas is mainly sourced from the countries lying east of Poland. Sales of natural gas from the distribution networks and transmission grid are regulated by the Polish Energy Law, with prices established on the basis of tariffs approved by the President of URE. The Segment uses three underground gas storage facilities (in Mogilno, Wierzchowice and Husów) for its own needs.
The segment's core activity consists in the transmission of highmethane and nitrogen-rich gas, as well as small amounts of propane/butane and coke-oven gas, via the distribution network. Distribution of natural gas is handled by six Gas Companies, which supply gas to households, industrial customers and wholesalers.