Polskie Górnictwo Naftowe i Gazownictwo SA, PGNIG, has opened a new cavern underground gas storage facility in Kosakowo, northern Poland. The site will improve gas transmission in the Pomerania region, in particular by ensuring the continuity of supplies and facilitating the connection of new users to the gas supply network.

The new facility, comprising surface infrastructure and an underground section, will be put in service in 2014. Currently, it is being operated on a trial basis to establish its technical parameters and operating profile. It is expected to be ready for commercial handling of gas fuel in the second quarter of 2014. The final acceptance of the surface facilities and the underground section took place on December 20th 2013 and December 30th 2013, respectively.

The surface section will collect gas from the transmission system, inject it into the storage caverns, withdraw it again and deliver it back to the transmission system. The site's key facilities include an auxiliary pressure reduction station, compressor station, gas separator, gas collection facility A, process boiler house, control facilities, process gas network and ancillary facilities.

The aggregate working capacity of the underground section, which currently consists of two caverns, has been successfully increased, from the originally planned 51.2 mcm to 61.2 mcm, to be available once the geomechanical and thermodynamic conditions stabilise. The almost 20% increase, achieved through construction of larger salt caverns, was possible thanks to the favourable geological and mining conditions in the Mechelinki bedded salt deposit.

The gas injection capacity is 100,000 m3/h, while the withdrawal capacity is 400,000 m3/h.

The surface facilities and underground caverns are part of an EU co-funded project, which is scheduled for completion in 2015.

The contractor is a consortium formed by Control Process SA (the leader), STALBUD Tarnów Sp. z o.o. and Biuro Projektów "NAFTA-GAZ" Sp. z o.o.

Further work on the site will involve completion of the EU co-funded project in 2015, comprising development of four caverns, to achieve a minimum working gas capacity of 100 mcm. This will be followed by completion by 2021 of clusters A and B comprising 10 caverns, to achieve a minimum working gas capacity of 250 mcm, and then by development of clusters C and D - currently in the design phase. The caverns will be placed in service as they are completed to further support the operation of the storage site.

Given the favourable geological and mining conditions of the Mechelinki bedded salt deposit, PGNiG SA estimates that a working gas capacity of ca. 300 mcm can be achieved by 2021. Subsequently, once clusters C and D are completed, the working gas capacity of the Kosakowo gas storage facility will have reached ca. 600 mcm.

About PGNIG

The PGNiG Group is the leader of the Polish natural gas market, as well as the only vertically integrated gas company in Poland. Its parent undertaking is Polskie Górnictwo Naftowe i Gazownictwo. Formation of the Group's enabled coordination of the upstream and downstream operations - from exploration and production to storage to trade and distribution of gaseous fuels. The roots of the companies forming PGNiG date back to 19th century - to the beginnings of Polish and world oil industry. The company has been operating under the name PGNiG since 1982. In 1996, the state-owned company PGNiG was transformed into a joint stock company.