Sustainability Report 2023

Impacts on local communities

GRI

GAZ-SYSTEM is pursuing an ambitious investment plan that contributes to the development of local communities and enhances energy security in the region.

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The main direction of the Company’s investments is the transmission infrastructure comprising, among others, gas pipelines, compressor stations, gas facilities, system nodes, connections and other process facilities. The second direction of the investments goes towards technical and administrative facilities (e.g. land acquisitions and easements, GDI, means of transport, IT systems and other). The ongoing investment projects increase the safety and reliability of the existing infrastructure and enhance regional and national energy security. The implementation of these projects creates a number of opportunities for the development of local communities. In 2023 alone, the Company transferred almost PLN 390 million in property tax to municipal budgets across the country.

In the performance of its investment tasks, GAZ-SYSTEM connects key industrial customers and distribution networks (supplying gaseous fuel directly to the end users) to the transmission network. Investment success is guaranteed by cooperation with experienced contractors.

GAZ-SYSTEM investment project implementation stage entails significant impact on the acoustic climate; however, any nuisance subsides once the construction work is completed. Interference with the landscape is limited to a narrow construction and installation corridor, which is subject to reclamation after the completion of construction. As the investment projects represent predominantly underground infrastructure, interference with the landscape may be considered negligible. Restrictions on accessibility to the land, for which appropriate protection zones are set (gas pipeline routes or other facilities) are financially compensated to the landowners.

Each year, GAZ-SYSTEM pays over PLN 40 million in property tax to the Świnoujście budget. Since 2017, the Company (formerly Polskie LNG) has paid about a quarter of a billion PLN to the Świnoujście municipality budget. Once the Terminal expansion is completed, the tax amount will increase significantly. Furthermore, the Company regularly supports initiatives organised for Świnoujście residents. In 2023, it provided sponsorship support in the amount of more than PLN 200,000 and made donations of over PLN 1 million. GAZ-SYSTEM has also been a long-term patron of Fort Gerhard – the Museum of Coastal Defence.

In its strategic role as energy infrastructure, the LNG Terminal in Świnoujście is under particular protection against any type of threat. In April 2023, the Governor of the Zachodniopomorskie Province introduced a 200-metre protection zone around the facility in order to reduce potential risks. As a result, the only road leading to the nearby tourist attractions such as: Fort Gerhard, the lighthouse and the beach in Warszów was closed, which caused dissatisfaction among the residents. To alleviate traffic problems, GAZ-SYSTEM provided free transport to these sites during the summer season. In addition, at the Company’s initiative, the forest road leading to the beach in the vicinity of the Underground City of Wolin Island was paved and the purchase of litter bins, portable toilets, bicycle stands and benches was financed. The Company also subsidised tickets for boat trips to Fort Gerhard and the lighthouse.

The decision to locate the FSRU Terminal in the waters of the Port of Gdańsk was preceded by thorough analyses taking into account various aspects, from environmental to technical. There may be some inconvenience to local communities during the project implementation. However, it will be short-term and temporary. During operation, no restrictions affecting the quality of life of the local residents, sailing community or tourists are expected.

At the same time, the construction of the FSRU Terminal brings a number of social and economic benefits. The project will increase business activity in the city and region, as well as generate new jobs related to the facility’s operation. The FSRU Terminal will contribute to the diversification of natural gas supply, thereby enhancing Poland’s energy security and strengthening the role of the Central European Transport Corridor. In the project implementation, GAZ-SYSTEM has been in dialogue with the local communities organising information meetings and public consultations. The Company has also prepared guides and brochures, which familiarise the public with the ideas behind the FSRU Terminal construction.

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