BUSINESS MODEL

The segment’s principal business activity is extraction of hydrocarbons from deposits and preparation of produced hydrocarbons for sale. This involves exploring for and extracting natural gas and crude oil from deposits, and includes geological surveys, analysis of geophysical data, drilling, and development of and production of hydrocarbons from gas and oil fields. The work is conducted based on PGNiG's own resources or jointly with partners, under joint operations agreements, in Poland and abroad. The cryogenic processing of nitrogen-rich gas yields, apart from high-methane gas, such products as liquefied natural gas (LNG), gaseous and liquid helium, and liquid nitrogen. In crude refining, crude condensate, sulfur and propane-butane are obtained. The segment relies on storage capacities available at the Daszewo and Bonikowo Underground Gas Storage Facilities.

The segment includes 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.

The principal activity of the segment is trade in natural gas in Poland and abroad. The segment specialises in selling natural gas produced from domestic fields or imported. The PGNiG Group is the largest supplier of natural gas in Poland. It is rapidly increasing its presence in foreign markets as a wholesaler and end user supplier by expanding the operations of its subsidiaries. The segment also trades in electricity, certificates of origin for electricity, and CO2 emission allowances. PGNiG is the leader of natural gas trading on the Polish Power Exchange. Trade and Storage operates seven underground gas storage facilities (Brzeźnica, Husów, Kosakowo, Mogilno, Strachocina, Swarzów and Wierzchowice).

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

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. Gas distribution services are provided by Polska Spółka Gazownictwa Sp. z o.o. (PSG), a subsidiary with a dominant share in the market. As the Distribution System Operator, PSG conducts its business in all provinces of Poland.

The segment’s activities consist in generation of electricity, heat, cooling and compressed air, and distribution of heat. The segment carries out major power engineering projects relying on natural gas. PGNiG TERMIKA is the Group’s competence centre for heat and electricity generation as well as execution of heat and power projects.

The segment includes the following companies: PGNiG Termika S.A. and PGNiG Termika Energetyka Przemysłowa S.A.

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 comprises: PGNiG, PGNiG Gazoprojekt S.A., Geovita S.A., PGNiG Serwis Sp. z o.o., PGNiG Technologie S.A. and Polski Gaz TUW.