Foreword by the President of the Management Board

Dear Sirs,

I am pleased to present to you GAZ-SYSTEM’s 2023 Integrated Report. It provides a comprehensive summary of our activity in the areas of environmental protection, social responsibility and corporate governance.

Despite the numerous challenges we faced recently, including in particular the pending armed conflict at our eastern border, we continued our investment projects and intensified our work in the field of energy transition in line with Polish and EU priorities in the area of energy and climate policy. We completed the construction of more than 370 kilometres of new gas pipelines, enabling more efficient gas transport. We completed the expansion of the Kędzierzyn-Koźle Gas Compressor Station, which increased its compression capacity by almost a half. It was also the first full year in which we achieved complete  independence from natural gas imports from Russia.

A key element ensuring Poland’s energy security is the LNG Terminal in Świnoujście. The construction of the third tank for in-process storage of liquefied natural gas is a strategic step that will bolster our energy independence and increase our competitiveness on the regional gas market.

As part of our long-term strategy to diversify supply and further strengthen the energy security of Poland and the region, we are also working intensively on the construction of the FSRU Terminal in the Gulf of Gdańsk. The year 2023 was a period of intensive design engineering work, and a set of administrative decisions obtained for three onshore gas pipelines connecting the FSRU and central Poland marked an important step towards the commencement of the of the FSRU Program implementation phase. A diversified and highly developed capacity ensuring reliable gas supply to Poland will support the development of renewable energy sources by providing stability and balancing of the electricity system.

One of our key responsibilities is the efficient operation of the GAZ-SYSTEM infrastructure and the ongoing supervision of natural gas and LNG systems which provide a foundation for a safe and reliable regasification and gas transmission process in Poland. At this point, I would like to express my sincere thanks to all the employees for whom the unyielding safety, efficiency of our network and the quality of customer service are the highest priority. It is their commitment and the high quality of their work that enable us to ensure an uninterrupted supply of gas to our customers.

In implementing the projects of such importance for the energy security of Poland and Europe, we take into account the opinions of our stakeholders, and therefore, each key project is widely consulted. Considering the expectations of local communities, we make every effort to ensure that our investment projects are implemented in the least disruptive manner to the surrounding areas, with due care for the natural environment and concern for occupational safety as our greatest priority. GAZ-SYSTEM’s efforts in this respect are confirmed by the Golden Chart of Safe Work Leader for 2024-2025, which we have been awarded one more time. This aspect is one of the main elements of the Human Rights Policy that we adopted last year. We have committed therein to comply with all rules and standards related to the safety of employees, local communities, and the environment.

The energy transition process will require the Company to adjust its strategy to these ambitious challenges and to undertake specific actions that will open up new opportunities for GAZ-SYSTEM and allow it to implement further plans and projects. The main opportunities for the entire organisation include the development of hydrogen market, implementation of the hydrogen-gas package and engaging in decarbonisation initiatives.

I greatly appreciate your trust and support over the past year. I am convinced that our perseverance and the commitment of our employees will enable us to successfully meet numerous challenges, such as the growing expectations of sustainable energy solutions, the fight against climate change or the geopolitical situation. On behalf of the Management Board, I would like to invite you to learn more about our Company’s activities, financial results, and plans for the future presented in this publication.