Increasing Interest in Gas Transmission: Four New Companies Launched Cooperation with GAZ-SYSTEM S.A. in January

Energetyczne Centrum S.A., Neas Energy S/A and Tauron Sprzedaż sp. z o.o. signed a framework gas transmission contract with GAZ-SYSTEM S.A. in January, while PKP Energetyka S.A. launched operational cooperation on gas trading. Thus, the number of transmission clients of GAZ-SYSTEM S.A. grew to 53 entities.

Changes introduced in the legal environment and progressing liberalisation of the Polish gas market encourage an increasing number of companies to enter the gas trading sector. PKP Energetyka S.A., Centrum Energetyczne S.A., Tauron Sprzedaż of the Tauron Polska Energia Group and Neas Energy S/A of Denmark are among energy sales companies to have decided to enter into a transmission contract with GAZ-SYSTEM S.A.

Tauron Sprzedaż, a member of the Tauron PE Group joined the group of transmission clients of GAZ-SYSTEM S.A. in January. TAURON is a top electricity sales company in Poland, with over 5 million clients. It sells electricity to largest business entities, industrial recipients, small entrepreneurs and individual household clients. The framework contract with GAZ-SYSTEM S.A. is another step to implement the business strategy that assumes the creation of a natural gas trading area in the TAURON Group.

The long-term business experience of TAURON in the energy industry, knowledge of client needs as well as legal and economic conditions of the energy sector are our unquestionable advantages, which – we are sure – will bring effects in the gas sales market as well. It is worth mentioning our other undeniable strengths such as the team of qualified specialists and the use of the latest IT solutions. All of that is not only a guarantee of high quality services but also constitutes the basis for development of an attractive gas sales offer - as underlined by Rafał Soja, Vice CEO of TAURON Sprzedaż.

The framework contract signed with GAZ-SYSTEM S.A. allows TAURON to make full use of the transmission system and to execute contracts with the distribution network operator in order to implement the ultimate objective: acquisition of clients and sale of high-methane gas in a competitive market.

Energetyczne Centrum S.A. has been selling energy to households and enterprises since 2011. Besides supplying energy, it offers additional services to its clients, like legal and medical services. As at the end of 2013 the client base of Energetyczne Centrum S.A. was 100 thousand entities that decided to change the energy sales company. By expanding the package of offered products with natural gas, the company will be able to provide its clients with complex services that allow for even bigger savings in household budgets.

The recent liberalization of the gas market gives such companies as ours an opportunity to compete for a client on market conditions. We want to provide our clients with, among others, gas and electricity offered in a package for a lower price. It is also our chance to make a new group of recipients interested in our products. Especially, that we are very well prepared organisationally for that - says Grzegorz Bruski, Vice CEO, Sales and Marketing, Energetyczne Centrum SA.

PKP Energetyka has been operating in the energy market since 2001 in four business areas: electrical energy services, liquid fuel sale to rail carriers, energy distribution and sale in Poland. Its development strategy assumes to introduce a multi-energy package that, beside the supply of energy and energy-related services, will also include natural gas.

Our purpose is to create an offer based on three pillars: electrical energy, gas and energy-related services. By implementing a product package, we would like to use our major advantages such as sales forces and offices in 15 biggest cities in Poland. Besides, our potential is determined by long-term relations with large manufacturing enterprises that are currently buying electrical power from us, while many of them use gas regularly. By understanding their needs we will be able to tailor our offer to their needs and provide lower costs of gas and electrical energy - said Wojciech Szwankowski, Member of the Management Board and Head of Trading and Business Development of PKP Energetyka S.A.

Neas Energy A/S is a Danish company specialised in trading  power and natural gas in Europe. It supplies energy services and management solutions to a wide range of market participants, including utilities, combined heat and power plants and energy trading houses . As the liberalisation of the Polish gas market advances, Neas Energy A/S is about to enter this market as well.

We are looking forward to start trading activities in Poland. Located in the middle of Europe, Poland will connect Europes western and eastern gas markets. Neas Energy expects mostly to import gas to Poland to be sold OTC and at the Exchange. As soon as prices will reach an attractive level, we will also consider storage activities -  says Henrik Jørgensen, Head of Gas at Neas Energy.

Under the contract model offered in the Transmission Network Code, GAZ-SYSTEM S.A. signs framework transmission contracts with its clients, supplemented by allocation of capacity. That model allows for flexible response to transmission demands of GAZ-SYSTEM S.A. clients and for satisfying the same based on the entry-exit tariff. The growing activity of market participants is observed also in the volume of gas sold under OTC transactions, which amounted to 10.8 TWh in January 2014 versus 28.5 TWh sold in the entire 2013. Turnovers in the Polish Power Exchange (PPE) in the first month of 2014 amounted, as per nominations, to 0.33 TWh, while over 1.05 TWh of natural gas was sold under the PPE transactions in the calendar year 2013.

GAZ-SYSTEM is a strategic company for the Polish economy. It is responsible for the transmission of natural gas, manages the most important gas pipelines in Poland and owns the President Lech Kaczyński LNG Terminal in Świnoujście.

As part of the 2015-2025 investment programme, GAZ-SYSTEM is constructing over 2000 km of new gas pipelines in the western, southern and eastern parts of Poland. Over a dozen new gas pipelines are under construction within the North-South Gas Corridor and the compressor station in Kędzierzyn Koźle, as well as interconnections with Lithuania and Slovakia. Onshore gas pipelines are planned to connect the planned FSRU floating terminal in the Gulf of Gdansk with the national transmission system. The LNG Terminal in Świnoujście is also being extended, as a result of which the regasification capacity of this facility will be increased by more than a half.

The company is also implementing one of the most important infrastructural projects in the country - the Baltic Pipe project which consists in the construction of a two-way offshore gas pipeline connecting Poland and Denmark, expansion of the local transmission network and three gas compressor stations.


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