Capital expenditure in the Distribution segment totalled PLN 2.3bn. In 2019, PSG spent more than PLN 1,356m on network expansion and connection of new customers, including ca. PLN 186.5m on buying out assets. Another PLN 676m or so was spent on the redevelopment and upgrade of the gas network, including nearly PLN 214m on the replacement and certification of gas meters and metering systems.

In 2019, PSG pursued projects supporting implementation of the PGNiG Group Strategy for 2017−2022 in the area of distribution, aimed at putting in place technological and organisational solutions in customer service, meter reading, and billing of distribution services.

As a gas distributor, PSG additionally engages in a range of activities to combat smog and air pollution. In 2017, a number of environmental initiatives were launched, which were continued in 2019 (often in cooperation with local governments). These include:

  • The ‘Inactive service lines’ project aimed at mobilising customers who have non-operational gas connections, especially in areas with a high level of low-stack emissions (smog);
  • ‘Connect, because every breath matters’ – an educational and promotional project intended to raise awareness of the risks to human health presented by air pollution and to promote gas fuel as an environmentally-friendly alternative to solid fuels.

In 2019, PSG continued its efforts to secure financing under the EU 2014–2020 financial framework. As part of Measure 7.1. – Development of intelligent storage, transmission and distribution systems, Priority axis VII – Improvement of energy security, PSG entered into agreements with the Oil and Gas Institute – National Research Institute, providing for co-financing of investment projects. The expected total cost of nine projects exceeds PLN 566m, VAT inclusive (with the amount of subsidies in excess of PLN 227m). The total length of the distribution pipelines to be built or upgraded under the projects is 440 km.

In 2019, PSG continued efforts to develop the research and development area with a view to enhancing its innovativeness. The ‘Innovative Idea’ project was completed. Its objective was to attract innovative solutions supporting PSG’s principal operations and improve the commitment of employees to its business development. Overall, 35 ideas were submitted by employees, of which 10 were honoured with awards and 2 with distinctions.

PSG actively participates in innovative programmes. Key R&D projects implemented in 2019 include:

  • Pilot implementation and testing of different technologies for data transmission from gas meters with a telemetric module;
  • Execution of a letter of intent with the Warsaw University of Technology with a view to preparing and implementing the first Polish experimental transmission of natural gas/hydrogen mixture via the gas network.
  • Development of a mobile liquefied gas metering system which can be used at any LNG station, ensuring accurate measurement of the mass flow rate;
  • As part of efforts to develop alternative fuels infrastructure – implementation of a programme to build natural gas stations and upgrade, expand or build networks necessary to connect these stations in 2019–2022. A tender procedure was announced to award a licence agreement for the natural gas fuelling service and for the operation of CNG and/or LCNG stations.

More information on capital expenditure in the Distribution segment in the period 2017-2022 and a detailed description of investments planned and implemented in 2020 is available here.

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