The Polish national oil and gas company PGNiG (71.9% state-owned) has released its 2021 results, posting PLN6bn (€1.3bn) in net earnings (-18% compared to 2020). PGNiG's Exploration and Production segment delivered strong results, due to a 19% increase in gas production to 5.4 bcm (and high gas prices) and a nearly 4% increase in oil production to 1.4 Mt, thanks to the scale-up of the company’s operations on the Norwegian Continental Shelf.
Sale volumes of natural gas increased by 9% in 2021 to 34.5 bcm due to household and corporate customers (excluding power, petrochemical and nitrogen plants) as well as sales on the Polish Power Exchange. Weather conditions played an important role, especially the unusually cold and long winter early in 2021. The company purchase abroad 16.1 bcm (+9% compared to 2020), with gas transferred from across Poland’s eastern border accounting for 61% and LNG for over 24% of the total. The volume of distributed gas rose 14% to 13.1 bcm, mainly due to a drop in the average annual temperature (down 1.3°C in 2021 relative to 2020), pushing up demand for gas used as a heating fuel. The volume of heat sales also increased by 6% to 41.2 PJ in 2021 (+6%) and electricity generation declined by 4% to 3.5 TWh.
PGNiG is active in production, import, storage, distribution and sale of gas. It is the largest gas wholesaler and retailer in Poland, accounting for 84% of domestic supply in 2020 and for 73% of the volumes sold on the wholesale market); it also controls the six main gas distribution companies in the country. Earlier in March 2022, the Polish Office of Competition and Consumer Protection (UOKiK), which implements antimonopoly regulations in the country, conditionally approved the merger between PGNiG and the Polish oil group PKN Orlen. Most notably, PGNiG will have to relinquish control over its Gas Storage Poland unit, to ensure that competition on the Polish gas market is not restricted.