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In 2017, PGNiG’s capital expenditure in the Exploration and Production segment amounted to PLN 867m, 4% more than in 2016.

Exploration expenditure was made mainly on appraisal and exploratory wells (with the largest amount – PLN 75m – spent on the In 2017, at Kosakowo UGSF, work to construct five Cluster B chambers together with the necessary technical infrastructure and land development was under way. As part of the investment project, the leaching of four caverns (K-6, K-8, K-9 and K-10) was carried out. Tenders were carried out to select, inter alia, contractors for gas infrastructure, land development and investor supplies. The K-6, K-8 and K-9 chambers were assumed to be put in operation in the fourth quarter of 2018. However, in the course of the monitoring of the cavern leaching process, favourable geological conditions were identified, allowing to obtain a larger geometric volume, which will translate into an increase in useful capacity for storing high-methane gas and to complete work on the K-6, K-8 and K-9 chambers by January 15th 2019, and on the K-7 and K-10 chambers by September 15th 2021.

As regards the implementation of the contract to construct the Kosakowo UGSF, an application to amend the licence held by the Kosakowo UGSF was prepared and submitted to the Ministry of the Environment. The amendment to the licence covers the construction of ten storage chambers grouped in two C and D clusters of five chambers each, along with gas pipelines and process pipelines.