Capitals

The productive capital of the Company consists mainly of fixed assets, including but not limited to the transmission infrastructure,  the Lech Kaczyński LNG Terminal in Świnoujście and the offshore gas pipeline Baltic Pipe. GAZ-SYSTEM manages the national transmission network and ensures the maintenance of continuous and reliable transmission  of gas between suppliers and consumers in Poland. The transmission system consists of two interconnected systems: the National Transmission System (high-methane E, nitrided Lw.) and the Transit Gas Pipeline System.

The enterprises dealing with gas distribution, as well as power and heat companies are being connected to the National Gas Transmission System. These activities are in line with the climate objectives of the European Union and global trends in the energy sector.

* Number of physical entry points to the transmission system, i.e. gaseous fuel delivery points with a defined physical location. The number includes gas imports, gas uptake from UGS facilities, upstream supply and domestic production (blending plants).
** Number of physical exit points from the transmission system, i.e. gas fuel uptake points with a defined physical location. The number includes transmission to exit points at the connection to distribution areas and the distribution network outside gas distribution area, filling UGS facilities, exports and end customers.
*** The volume of transmitted gaseous fuel includes the transport of nitrided natural gas (Lw), the volume of which has been converted to high-methane gas (E). The volume of gaseous fuel transported in units of volume is indicative only.
**** The volume of gaseous fuel transmitted includes the operation of the UGS facilities. The volume of gaseous fuel transported includes the transport of nitrided natural gas (Lw), the volume of which has been converted to high-methane gas (E). The volume of gaseous fuel transported in units of volume is indicative only.

The Transit Gas Pipeline System in Poland constitutes a part of the gas pipeline system measuring approx. 4000 km from Russia through Belarus and Poland to Western Europe******. The transit gas pipeline length in the territory of Poland amounts to 683.9 km. The owner of the Polish section of the TGPS is the System Gazociągów Tranzytowych EuRoPol GAZ S.A. in Warsaw, and the operator of the Polish section of the Yamal-Europa pipeline is GAZ-SYSTEM.

The gas pipeline runs latitudinally from east to west from the Polish-Belarusian border in the area of the village of Kondratki to the Polish-German border in the area of the village of Górzyca. The gas pipeline route crosses

******  Since January 2023, this pipeline was no longer used for gas transit (due to lack of possibility of gas transmission from the territory of Belarus). The gas pipeline in 2023 only enabled the transmission of natural gas from Germany to Poland.

GAZ-SYSTEM is also the operator of the LNG Terminal  named after President Lech Kaczyński in Świnoujście, providing LNG offloading from methane carriers, in-process storage, regasification and loading of LNG onto tanker trucks and ISO-containers. The current regasification capacity of the terminal is 6.2 billion Nm³ per year. The Terminal accommodates two cryogenic LNG in-process storage tanks with a total capacity of 160,000 Nm³ each. In 2023, the Terminal received 62 LNG deliveries, comprising over 10.7 million m³ of LNG which equals to 6.2 billion Nm³ of gas. A total of 5.8 billion Nm³ of gas was transferred to the transmission system. In addition, 6.56 billion Nm3 of gas was transmitted via the Baltic Pipe offshore pipeline in 2023. The capacity to transmit the planned volume of 10 billion Nm³ of gas per year has been confirmed in standard operation.

Financial capital are the financial resources at the disposal of GAZ-SYSTEM comprising its equity, including that generated as part of its business activities, and external funds, i.e. loans, borrowings, and grants. Financial capital is crucial for the implementation of ambitious investment objectives and for ensuring financing of day-to-day operations.

In 2023, the Company’s share capital was increased. The new shares were covered by treasury securities (bonds). In accordance with the investment agreement concluded with the State Treasury, the funds from the recapitalisation will be used to finance the Company’s strategic investment projects. An important strategic direction of the Company’s development is the creation of the conditions conducive to the development of a gas hub in Poland to the extent established under the Energy Policy of Poland.

In 2023, GAZ-SYSTEM achieved a higher financial result compared to the previous year. Net profit in 2023 amounted to PLN 272 million which represents an increase of 40% compared to the previous year. Full financial data, including the balance sheet, income statement and cash flow, are available in the ’financial data’ section.

In 2023, GAZ-SYSTEM continued to invest in the expansion of the gas transmission infrastructure; capital expenditure on new projects  amounted to PLN 2,217 million in 2023. Development (construction of new and expansion of existing gas transmission pipeline infrastructure) and modernisation of existing gas pipelines were the major items of capital expenditure. These investment projects contribute to increasing operational efficiency and minimising environmental impact.

Natural capital is a pillar of GAZ-SYSTEM’s sustainable development stemming from profound respect for the environment. Activities in this area focus on sustainable mitigation of environmental impact and taking innovative steps to protect the nature.

Each and every employee of the Company, regardless of their function, is obliged to act with a view to protecting the environment. The main responsibilities in this respect include:

The Company’s strategy up to 2033 identifies three key environmental objectives: improving energy efficiency, reducing greenhouse gas emissions and mitigating negative impacts on environment and climate.

The Company aims to actively reduce the dynamics of climate change related to greenhouse gas emissions mainly by identifying the most emission-intensive areas of activity (joining the carbon footprint calculation), as well as measures to reduce methane emissions and improve the reporting accuracy.

In order to confirm the compliance with high environmental and ecological standards at both national level as well as internationally, and its commitment to caring for the ecosystem, GAZ-SYSTEM has started the implementation of environmental management system according to the ISO 14001:2015 standard.

The Company places great emphasis on environmental care in its operational and investment activities. Active monitoring of the Company’s impact on local ecosystems allows countermeasures to be taken to mitigate any negative effects. Various initiatives are being undertaken primarily to counteract phenomena that may have a negative impact on the environment, and if they occur, the Company strives to reduce their impact to a minimum, thus demonstrating the corporate concern for the condition of nature. GAZ-SYSTEM’s activities which entail environmental impact are subject to constant monitoring.

GAZ-SYSTEM’s most valuable asset is its employees. Their experience, competence and commitment form the foundations of the organisation.

As at 31 December 2023, the Company employed 3,419 persons, of whom 853 were women and 2,566 – men.

The Company consistently pursues a proactive human resources policy, focusing on the comprehensive development of employees and supporting their needs and competences. One of the key elements of investing in human capital is the various training courses offered to employees. They not only improve their qualifications, but also adapt their competences to contemporary market challenges. As part of the 'knowledge sharing zone’, the Company provides specialised industry-related training resources, an e-learning platform and an expert database to facilitate employee knowledge development. In 2023, as part of the training database expansion, the Trainer’s Edusphere was launched aiming at building an internal coaching  community (composed of Company employees specialising in various areas and industries), developing and strengthening their coaching competencies.

Creativity, innovation, and the ability to quickly acquire new knowledge are becoming the foundation of GAZ-SYSTEM’s competitiveness and key elements of the Company’s adaptability to dynamic changes in the business environment. A good example of such initiatives responding to the market needs and changing energy paradigms is the cooperation with the AGH University of Science and Technology in Krakow. In 2023, under an agreement with GAZ-SYSTEM, the University launched a new postgraduate program in 'Hydrogen and biomethane – extraction, transport and use’, responding to the growing demand for specialists in the area of alternative fuels. The study program focuses mainly on the technical and market aspects of innovative solutions related to hydrogen, biomethane, ammonia and carbon dioxide. Attention to the competences of the future was also reflected in initiatives addressed to employees, such as the following programs: Academy of Effective Leader, 7 keys to effectiveness or FRIS – Your natural way of thinking and acting.

The Company also recognises the generation gap challenges, seeing them as an opportunity to build a diverse, modern team ready to meet the requirements of a dynamic business environment. The orientation towards this challenge was addressed in two projects implemented in 2023: Knowledge Management and Beacon +.  In the first of these, employees with extensive professional experience and seniority shared their knowledge and skills with junior staff members as tutors or mentors. The second project was nationwide. The Company joined the initiative upon invitation by the Central Institute for Labour Protection – National Research Institute. The project involved an analysis of the status of Company employees at retirement and pre-retirement age based on the ICF classification.

Changes towards low-carbon economy and climate-neutrality pose challenges for GAZ-SYSTEM in terms of development of new qualifications covering the issues of renewable energy and modern services. The Company is aware that the achievement of these goals entails the adjustment of its business profile while considering the changing demographic trends. One of the Company’s strategic objectives is the implementation of a business model based on process improvement and data analysis. The ambition of GAZ-SYSTEM is to systematically reduce the number of ICT systems while simplifying those in use, and to digitise the processes necessary for analysis and business decision-making. These activities are key to maintaining the Company’s competitiveness in a dynamically evolving business environment.

In pursuance of its business activity, GAZ-SYSTEM has a substantial short and long-term impact on its environment. The Company regularly engages in dialogue with its stakeholders to learn about their expectations and then analyses in detail the issues which are of their greatest concern.

In 2023, the Company held a total of 113 meetings with community and local government representatives regarding the investment process. In the areas where investments projects are implemented, as part of its sponsorship and philanthropic activities, the Company supports important events and initiatives for local communities. One of the cornerstones of GAZ‑SYSTEM’s activity in this area is cooperation with educational institutions. As part of „GAZ-SYSTEM for Education” program, the Company supports municipalities with donations for the purchase of sports equipment and equipment for specialised classes in primary schools. In addition, the Company has provided patronage to six secondary schools across Poland that educate students in the gas industry. The schools receive from GAZ-SYSTEM financial support for vocational laboratory retrofitting, organisation of workshops and scholarships for students.  

GAZ-SYSTEM is aware of its influence on the procurement market and on the shaping of the business standards. The Company has issued the Code of Conduct for Suppliers, which promotes good market, social and environmental practices. The Company expects its business partners to respect human rights, labour law and to act in accordance with the principles of fair competition and prevent corruption and bribery. Further, the Company strives to build lasting relations with its suppliers based on the principles of transparency and mutual respect. To this end, the Company organises periodic meetings called „GAZ-SYSTEM Supplier Day”, addressed to companies interested in commercial cooperation in the development and maintenance of natural gas transmission infrastructure. This is an excellent platform to discuss key issues concerning the Company’s activities, ongoing projects, and plans for development. In 2023, the meeting was attended by over 140 Polish and foreign companies.  

The Company also maintains a regular dialogue with its customers. One-to-one meetings, conferences, training sessions and webinars are held periodically to exchange views on current cooperation issues. In 2023, seven „GAZ-SYSTEM for customers” webinars were attended by 458 customers. During the meetings, the principles of using the transmission infrastructure and the terms and conditions of cooperation were discussed. Aiming to continuously improve customer service, the Company holds regular training sessions among its employees, and conducts periodic customer satisfaction surveys. In 2023, the score in customer satisfaction index was 4.52/5.