DIRECTORS' REPORT ON PGNiG SA'S OPERATIONS ... - Notowania

Directors’ Report on PGNiG S.A.’s Operations in 2008
In 2008, PGNiG S.A. worked on extending the existing Underground Storage Facility in Strachocina
(for storing high-methane natural gas) to increase the available capacity to 330m m 3 , and on
constructing the new underground storage facilities in Daszewo (for nitrogen-rich natural gas Ls) and
Bonikowo (for nitrogen-rich natural gas Lw). The nitrogen-rich gas storage facilities are to help
optimise the production of Ls nitrogen-rich gas from local sources in the seaboard region (Daszewo)
and the production of Lw nitrogen-rich gas from sources in western Poland (Bonikowo).
3. Planned Exploratory Work
Exploratory Work in Poland
In 2009, PGNiG S.A. plans to conduct geophysical and drilling works at 29 exploratory boreholes
(work at six boreholes to be conducted in cooperation with foreign companies) and at seven
prospecting boreholes.
Exploratory Work Abroad
In 2008, PGNiG S.A. took a number of steps to acquire new sites for exploration and new licence
areas in such countries as Algeria, Iraq, Iran, Morocco, Mongolia and Tunisia. All these efforts will be
continued in 2009. Furthermore, PGNiG S.A. plans to press ahead with the exploratory work in the
licence areas in Denmark, Egypt and Pakistan.
Underground Gas Storage Facilities
In 2009, PGNiG S.A. will proceed with the construction of the surface installations of the Daszewo
facility. The Company also plans to commence construction work of the surface infrastructure for the
gas storage facilities in Strachocina and Bonikowo.
Natural Gas Production
PGNiG S.A. is following an investment programme aimed at increasing, in a longer perspective, the
natural gas production capacity. As part of the programme, the Company plans to develop new
reserves and boreholes, modernise and expand the existing natural gas mines, and build new
underground gas storage facilities and expand the existing ones. Moreover, PGNiG will take steps to
maintain the volume of hydrocarbons production from fields already in use at the current levels.
The plans for 2009 assume a natural gas production volume of 4.3bn m 3 annually (high-methane
equivalent) with a calorific value of 39.5 MJ/m 3 , which is to go down from the previously assumed
production volume of 4.6bn m 3 . The lower volume of the forecast production is attributable to a
decline in demand for nitrogen-rich gas from industrial customers receiving gas directly from deposits.
It is also due to the rescheduling of the Capex plans related to development of new gas fields and a
natural decrease in the production capacities from the reserves already in use. In order to improve the
production volume to approx. 4.5bn m 3 , in the next few years PGNiG S.A. intends to develop and
commence production on a number of documented natural gas deposits, including in Wielichowo-
Ruchocice, Roszków and Międzychód (nitrogen-rich gas reserves in western Poland) as well as in
Łukowa, Jasionka – Phase II, Kupno, Pilzno – Phase II and Rudka – Phase II (high-methane gas
reserves in the Province of Rzeszów).
2010 is to see completion of the project of Grodzisk Nitrogen-Removal Plant, with the annual
throughput capacity of feedstock gas amounting to 500m m 3 . The project provides for development of
the reserves located in the Nowy Tomyśl-Grodzisk region and of the gas extracted from the Lubiatów-
Międzychód-Grotów (LMG) reserves, as well as the construction of a second controller, besides the
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