The core goal of investment in Polska Spółka Gazownictwa sp. z o.o. is ensuring the safety and continuity of fuel gas supplies and development carried out by connecting new customers and increasing the amount of fuel gas distribution services provided, as well as maintaining high standards of services. The company constantly invests in the modernization of its network assets in order to ensure the improvement and maintenance of the gas pipelines’ condition and to guarantee operational safety.
Investment tasks carried out under the plan are assigned to investment groups, the most important of which are:
  • Network expansion and connections,
  • Reconstruction and retrofit of the gas network,
  • Gas meters,
  • Others (equipment for operating the gas network, means of transport for operating the gas network, or IT systems necessary for the management and operation of processes at PSG).

The annual value of the Investment Plan of Polska Spółka Gazownictwa sp. z o.o. amounts to approximately 3.2 billion PLN. Approximately 60% of this amount is invested in the expansion of the gas network, while the remaining part goes to the modernization of the network and the provision of the hardware and IT resources necessary to operate the gas network.

The chart below shows the value of investment outlays in the period 2020–2024 in individual investment groups:

Level of investment outlays, 2020–2024

In 2023 a significant increase in the scope of the investments made was maintained.

As part of the implementation of the Investment Plan, in 2023 the construction and modernization of gas pipelines with a total length of 3,249 km was completed, and over 90,000 gas connections were built and modernized, with a total length of 1,007 km.

Length of gas networks built in 2023

A total of 4,256 km of gas pipelines and connections

The effective implementation of such a large scale of line investments, involving the need to acquire the legal deeds to thousands of properties on which gas networks are built, is an organizational and legal challenge not only for the company. In order to simplify and accelerate the process of preparing some of the PSG investments, the legislator included them in the Act of 24 April 2009 on investments in the liquefied natural gas regasification terminal in Świnoujście (hereinafter the special act).

As a result, 28 PSG gas pipelines (9 in the 2019 amendment and 19 in the next amendment from 2021) were added to the list of investments supporting investments in the terminal, and the possibility was introduced that the Company can make connections and build gas pipelines to generating units or cogeneration to produce electricity or heat. After more than four and a half years of experience with the implementation of that regulation, the PSG investment preparation process has been shortened in extreme cases from more than 12 years and three months to 2.5 years.

Independently of the simplifications introduced, construction work of such significant level of difficulty requires cooperation with engineering companies, construction companies and providers selected through transparent, competitive tenders. Effective implementation of these public purpose investments is also possible thanks to regular contact with state administration offices, real estate owners, road administrators, the Management of State Forests, administrators of land belonging to Polish State Railways, representatives of the State Water Holding 'Polish Waters', local communities and other beneficiaries, whose consent for the use of the real estate is obtained by the Company at the stage of creating project documentation.

Our company’s cooperation with local government units from the province level to the poviat and municipal levels is also extremely important, not only in activities resulting from the construction process, but also in terms of assessing the potential of the end-user market and cooperating with industrial investors looking for investment areas fitted with technical infrastructure. Our partner companies in the gas trade who commission us with distribution service are of key importance in acquiring new customers.

Apart from the energy infrastructure, investment in gas distribution networks involves sewage, water supply, telecommunications and communication infrastructure, and the necessary elements of infrastructure which are essential to meet the communal, living, and economic needs that contribute to the improvement of living conditions and the economic development of the country.

Additionally, due to the EU air quality requirements (IED, MCP directives), stricter emission standards, which should be met within a specific time limit, have been imposed on large- and medium-sized fuel combustion sources, As the replacement of solid fossil fuels with gas is one of the most advantageous solutions (also in economic terms), we have recently observed an increased interest from the energy and heating sector in connecting to the PSG distribution network.

A leading example of an investment completed in this area in 2023 is the gas pipelines connecting PGE EC S.A. in Kielce and PGNiG Termika in Rybnik to the gas distribution network.

The value of the Investment Plan of Polska Spółka Gazownictwa sp. z o.o. for 2024 is 3.231 billion PLN. In 2024, 2.855 billion PLN has been planned for investment tasks directly related to the gas network, which represents 88% of the total value of the Investment Plan.

The chart below shows the value and proportion of investment outlays in individual investment groups.

Level of investment
outlays in 2024

By the end of 2023, the company managed to complete all 10 investment projects co-financed by the European Union under the Infrastructure and Environment Operational Programme 2014-2020, for which grant agreements were signed with a total EU support amount of more than PLN 254 million.

In 2023 and Q1 2024, the largest investments in this group were completed, i.e:

Construction of the Sandomierz - Ostrowiec Świętokrzyski gas pipeline

  • OBJECTIVE: Modernisation of the gas network associated with security of supply and operation   
  • CAPEX: 173.46 million PLN
  • EU GRANT: 80.66 million PLN

Construction of gas pipeline between Lubienia - Masłów and gas pipeline between Mójcza - Kielce
  • OBJECTIVE: Modernisation of the gas network associated with security of supply and operation 
  • CAPEX: PLN 198.80 million
  • EU GRANT: 48.50 million PLN

Construction of the gas pipeline on the relation Witnica - Gorzów Wlkp. and the gas network in Kostrzyn nad Odrą
  • OBJECTIVE: Elimination of transmission congestion - system tasks 
  • CAPEX: PLN 106.3 million
  • EU GRANT: PLN 30.3 million

Gasification of the Szczawnica area and neighbouring municipalities
  • OBJECTIVE: New gasification and related reconstruction
  • CAPEX: 91 million PLN
  • EU GRANT: 23.71 million PLN

Gasification of villages in the municipalities of Kłobuck, Wręczyca Wielka, Opatów and Krzepice
  • OBJECTIVE: New gasification and related reconstruction
  • CAPEX: PLN 66.93 million
  • EU GRANT: PLN 36.8 million

Reconstruction of the Dąbrowa Górnicza-Szopienice gas pipeline:
  • OBJECTIVE: Modernisation of the gas network associated with security of supply and operation
  • CAPEX: PLN 64.49 million
  • EU GRANT: PLN 6.97 million

Some of the other strategic investments for the PSG, which are underway, are planned for co-financing under the new EU financial perspective for 2021-2027 from the European Funds for Climate and Environment Infrastructure (FEnIKS) programme. These include, above all, the projects included in the amendment of the terminal spec, which had a direct impact on speeding up the design phase and, in principle, obtaining the necessary construction permits. In response to the first call for gas distribution projects announced by INiG-PIB, with the planned allocation of EU co-financing at the level of PLN 700 million, the PSG prepared 11 large investment projects, with the aim of fully utilising the above-mentioned amount. 

Bearing in mind that the total pool of EU funds, under the FEnIKS Programme, for the gas distribution sector may exceed PLN 1.3 billion, the PSG plans to apply for co-financing for further investment projects with complete administrative decisions also in the next calls for proposals. 

To sum up, the total value of investment outlays for projects covering a total of more than 800 km of distribution gas network provided for EU co-financing under the FEnIKS Programme amounts to more than PLN 2.6 billion.