CORPORATE CENTER

The main task in this area is to develop an efficient organisational and management model across the PGNiG Group. To this end, three key ambitions were set: increase involvement in and effective execution of R&D&I projects (target outlays of ca. PLN 680m), improve operational efficiency across the PGNiG Group, and enhance the Group’s image. 

The Corporate Centre comprises the PGNiG Head Office, comprising 16 Departments, 2 Offices, and the Central Measurement and Testing Laboratory. 

PGNiG Group support companies and secondary business activities

PGNiG Technologie

PGNiG Technologie is active mainly on the domestic oil and gas market and, to a lesser extent, on foreign markets. Its business covers three areas: gas pipelines and gas infrastructure, exploration and production, and storage of gas. With regard to the first area, the company provides construction and assembly services and supplies finished products used in the construction, extension and repair of gas networks and gas infrastructure. Its operations in the exploration and production area consist in the provision of construction and assembly services as well as finished products dedicated to hydrocarbon production and exploration. As far as the storage area is concerned, PGNiG Technologie supplies products and services related to the extension, overhaul and operation of gas storage facilities. 

In 2019, PGNiG Technologie provided its services to PGNiG Group companies and third parties, including: GAZ-SYSTEM, LOTOS Petrobaltic S.A., ORLEN Upstream Sp. z o.o and MHWirth AS. For PGNiG, in 2019 it constructed a unit for drying water-containing gas at the outlet of the Yamal pipeline to improve security of gas supplies from countries east of Poland.

PGNiG Serwis

The principal business of PGNiG Serwis is the provision of comprehensive finance and accounting services, HR and payroll services, ICT services, direct physical security services, technical security services, property management, and management of adjacent areas for the PGNiG Group companies. PGNiG Serwis acts as a Shared Services Centre for 15 companies of the PGNiG Group.

Gazoprojekt

PGNiG GAZOPROJEKT S.A. drafts pre-design and design documentation for the gas, fuel and energy as well as general construction sectors. Operating conditions in those sectors depend on the general situation in the economy and implementation of investment plans by the largest companies. In 2019, the market was highly saturated in terms of demand for design services, mainly from large strategic players, such as PERN S.A., OGP Gaz-System S.A. and PSG. Most of the projects involved transmission infrastructure (gas pipelines, compressor stations, fuel pipelines) and hydrocarbon production. In addition, given the developments on the liquid fuels market, considerable potential is still presented by the liquid fuels storage and distribution market. 

Geovita

Geovita’s business involves leisure-related activities, spa treatment services, health protection, medical rehabilitation, and provision of conference and training services. The company’s facilities are located in Dąbki, Mrzeżyno, Dźwirzyno, Jadwisin near Serock, Płotki near Piła, Gronów near Łagów, Jugowice, Lądek-Zdrój, Zakopane, Wisła, Złockie near Muszyna, Krynica-Zdrój, Czarna near Ustrzyki Dolne and Kraków. In 2019, the restructuring process initiated in 2017 was continued with a view to increasing the Company’s value, which also means the reduction of significant debt towards creditors. In the reporting period, the company’s Management Board embarked on the divestment of unprofitable assets.

Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych (Polski Gaz TUW, mutual insurance company)

Polski Gaz TUW offers insurance cover to PGNiG Group companies, including: property, motor and third-party liability insurance, legal protection as well as insurance guarantees and health insurance. It also provides insurance cover to third parties, especially from the power sector. In 2019, the company continued cooperation with the Group companies in relation to insurance contracts.

The key project completed in the reporting period involved the establishment of Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych na Życie, a subsidiary of Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych, whose main focus in the initial period of operation will be on offering Employee Pension Plans in the form of unit-linked group life insurance. In 2019, the Financial Supervision Authority authorised Polski Gaz TUW na Życie to conduct life and health insurance operations.

PGNiG Central Measurement and Testing Laboratory (CLPB) Branch

The CLPB Branch provides services such as testing of accuracy and reliability of measurements of the quality and quantity of natural gas, testing of measuring devices and systems, as well as technical analyses, opinions and technical expert reports. It supervises measurement systems at key cross-border entry points to the transmission system, also at the LNG terminal in Świnoujście. Its services include validation of gas chromatographs for the purposes of natural gas settlements, calibration of measurement systems at gas infrastructure units, etc. In 2019, the CLPB Branch performed Europe’s first validation of cryogenic fluid and LNG using cryogenic flow meters at the SMOK units in Odolanów. Key customers of the Central Measurement and Testing Laboratory are PGNiG Group companies and branches, GAZ-SYSTEM and EuroPolGaz S.A.

Growth prospects and future challenges

PGNiG Technologie

In 2020–2022, the company will focus on growth within its existing operating sectors, basing on the Group’s investment plans. This will involve in particular activities relating to investment projects and supplies to the hydrocarbon production industry. The company will seek to build its competitive advantage through cost leadership in the sector and through diversification (quality, flexibility, pace of work). In the Oil&Gas sector growth initiatives were undertaken with a view to building new capabilities to win contracts for the construction of gas compression sets and other gas-fired heat generation infrastructure.

In addition, to supplement its existing project and order portfolios, the company will take steps to win contracts for the transmission and distribution of natural gas and to develop export sales of finished goods (Norway, Ukraine). 

PGNiG Serwis

In 2020, PGNiG Serwis plans to proceed with its activities towards implementation of the Group’s strategic plans. PGNiG Serwis believes that the ongoing process of streamlining and reducing the Group’s operating expenses may be an opportunity for taking over ancillary activities and providing support services to more Group companies. PGNiG Serwis also intends to expand its personal and property security business, IT, property management, as well as support services related to the performance of obligations under the Waste Act.

Gazoprojekt

In 2020, Gazoprojekt will seek to continue its services for existing customers, not only within the Group but also for other leading gas and oil market companies. Projects which seem particularly interesting involve the transmission and storage of crude oil and gas, as well as expansion of gas-fired heat and electricity generating capacities. In the near future, large investment projects are also planned to be carried out in the related chemical sector. In the long term, Gazoprojekt’s plans include expanding its operations on foreign markets.

Geovita

In the near future, Geovita will continue its restructuring efforts as regards cost optimisation, efficiency improvement across all business areas, and divestments of unprofitable assets. 

Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych (Polski Gaz TUW, mutual insurance company)

In 2020, Polski Gaz TUW plans to develop its health insurance offering for a broad group of customers, both in and outside of the Group. The company intends to start to use PGNiG OD’s customer service offices to sell insurance products, including: Gazek Opiekun Domu, i.e. insurance cover for household movables, assistance and legal protection (affinity), covering costs of legal representation and arranging and paying for legal advice. Challenges facing Poland Gaz TUW in 2020 also include operational launch of its subsidiary Polski Gaz TUW na Życie, and the taking over of the management of assets accumulated in the Group companies’ Employee Pension Plans by the new company. The long-term objective of Polski Gaz TUW is to maintain and consolidate its position as the leader in the upstream insurance market and to constantly adjust its insurance offering to the Group’s needs. 

PGNiG Central Measurement and Testing Laboratory (CLPB) Branch

CLPB’s primary objective is to maintain its position as the leading research laboratory and attestation centre for measurement systems and devices used in the natural gas industry and a natural gas quality control laboratory for all kinds of natural gas (L and E) and all their forms (CNG, LNG), as well as biogas. It supervises measurement systems at key cross-border entry points to the transmission system, also at the LNG terminal in Świnoujście. In the coming years, CLBP intends to grow its capabilities in testing hydrogen as a low-emission fuel for vehicles (there is no such laboratory in Poland, despite the emerging market for hydrogen fuel), geological analysis (porosimetry and core gas testing, analysis of liquid mineral hydrocarbons) andpreparation of the SMOK-4 unit, which will be used to certify LNG pumps at stations selling liquefied gas in Poland.

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