Investments in 2020
In 2020, the total capital expenditure incurred in the Distribution segment was approximately PLN 2.95bn. PSG spent around PLN 1.86bn on expanding the network and connecting new customers. Another PLN 0.81bn was spent on reconstruction and modernisation of the gas network, of which nearly PLN 0.23bn on replacement and certification of gas meters and components of metering systems.
In 2020, 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 2020, a number of environmental initiatives continued to be implemented in cooperation with local authorities. These included:
- 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 2020, 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 ten projects exceeds PLN 675.2m, VAT inclusive (with the amount of subsidies in excess of PLN 257.4m). The total length of the distribution pipelines to be built or upgraded under the projects is approximately 489 km.
In 2020 PSG executed a grant agreement with the National Centre for Research and Development for the implementation of an R&D project carried out in consortium with Kielce University of Technology. The project is expected to deliver a new precise technology for assessing the technical condition of gas pipelines using acoustic methods and GPR surveys. PSG is constantly looking at possibilities of obtaining funding for new development initiatives. The company participates in preparations to obtain funding and secure the interests of the gas industry in the new EU perspective for 2021-2027. In this respect, PSG collaborates with PGNiG, the Chamber of the Natural Gas Industry and the competent ministries.
In 2020, efforts were continued to develop the R&D&I functions at PSG and improve the innovation potential of the company. The PSG Innovation System was launched with the aim of acquiring innovative solutions to support PSG’s core business and to increase employee involvement in the company’s development. As a result of the system’s operation, 20 proposals were submitted by PSG employees, out of which five were recommended for implementation.
PSG actively participates in innovation programmes. Some of the most important R&D projects implemented in 2020 included:
- Pilot implementation and testing of different technologies for data transmission from gas meters with a telemetric module;
- efforts to develop the requirements for injecting combustible dopant gases, including hydrogen, into the PSG network;
- testing of a system with extended gas flow measurement range under varying thermodynamic conditions;
- implementation of an EU co-funded project entitled „Innovative System for Automatic Identification and Location of Gas Infrastructure Defects using the Phenomenon of Acoustic Emission (SIildig AE)”.