1. Overview of the Polish Energy Market & PGNiG Capital Group 6th Stakeholder Group Meeting Gas Regional Initiative – Region South-South East Gdynia, 26th June 2009

2. The Company’s history and key changes on the Polish Energy Market The Company’s history and key changes on the Polish Energy Market 1982 1982: PGNiG was established as the State-owned Enterprise PGNiG 1996 1996: State-owned Enterprise PGNiG is transformed into a joint-stock company wholly owned by the State Treasury 2004 2004: Ownership unbundling of the transmission activity – establishment of the PGNiG- Przesył Sp. z o.o. (currently OGP GAZ-SYSTEM S.A.). OWNERSHIP UNBUNDLING 1997 1997: Establishment of the Energy Regulatory Office 2005 2005: 23 September 2005 - PGNiG on the Warsaw Stock Exchange 2007 2007: 1 July – introduction of Third Party Access Rule (as a result of Directive 2003/55/WE being implemented into Polish Energy Law) 2007: Leagal unbundling of distribution activities – establishment of 6 Distribution System Operators LEGAL UNBUNDLING 2008 2008: PGNiG appointed as Storage System Operator (31 December 2008). FUNCTIONAL & ACCOUNTING UNBUNDLING 2006 2006: Transmission Network Code approved by the Energy Regulatory Office 2008: Distribution Network Codes approved by the Energy Regulatory Office 2009 2009: Storage Code – published for public consultations

3. Poland’s leading integrated gas and oil company Leading gas and growing oil producer Leading gas importer to Poland and owner of gas storages Robust domestic gas distribution business  E&P – domestic production of natural gas (4.1 bcm) and crude oil (496 thousand tones);  International expansion in E&P;  Total sales – 13.9 bcm of natural gas;  Storages – 1.7 bcm of working capacity;  Retail – 6.6 million of end-customers;  Strong financial position; rating BBB+(S&P), Baa1 (Moody’s)  Revenue – 4.4 billion EUR. Key data * PGNiG – Basic information PGNiG – Basic information Shareholder’s Structure ** * Data for 2008 **After shares distribution to employees

4. Business structure Wholesale E&PStorage Transmission Distribution Retail PGNiG PGNiG Norway POGC Libya Service subsidiaries Branches: Pakistan, Denmark, Egypt, Libya. Six regional DSO PGNiG Ownership unbundling Legal unbundling Functional and accounting unbundling Overview of PGNiG’s business Overview of PGNiG’s business  Vertically integrated business;  Leading position in key market segments;  Proven ability to manage regulatory risk across the value chain.

5. The PGNiG’s Capital Group value is built on 6 main pillars Ensuring the supply of natural gas The development of E&P activities Increase of gas storage capacity Raise profitability of the gas distribution activity The development of commercial activity Enlargement of the areas and scale of operations Transforming the company into a leader of the European fuel – energy market Constant improvement of daily operations Key Assumptions of PGNiG’s Group Strategy Key Assumptions of PGNiG’s Group Strategy

6. Gas market in Poland (1/2) Gas market in Poland (1/2) Gas consumption per capita in 2007 (cm) Gas consumption (bcm/year) Gas consumption per capita (cm/year) 85 58 50 37 12 13 11 12 9 91 96 70 50 43 21 16 11 13 10 97 91 85 46 43 34 17 14 13 9 0 30 60 90 120 GermanyUnited Kingdom Italy Netherlands FranceSpainBelgiumPoland HungaryCzech Republik 199720022007e +14% +7% +46% -7% +16% +178% +31% +30% +10% -9% (change in the last 10 years in %) 3 207 1 306 1 463 1 009 1 191 1 039 915 313 628 273 3 106 1 541 1 613 1 216 1 328 1 099 931 491 723 293 2 837 1 641 1 494 1 460 1 342 1 180 843 762 692 359 0 700 1 400 2 100 2 800 3 500 NetherlandsBelgium United Kingdom Italy Hungary GermanyCzech Republik SpainFrancePoland 199720022007e -12% +26% +2% +45% +13% +14% -8% +143% +10% +31% (change in the last 10 years in %) Less than 500 cm 500 cm - 1 000 cm 1 000 cm - 2 000 cm More than2 000cm  Gas consumption per capita in Poland is very low - only 359 cm in 2007  Gas consumption per capita in Poland is more than 2 times lower than in Czech Republik and more than 3 times lower than in Hungary Gas consumption – Poland vs Europe

7.  Gas share in Primary Energy Sources in Poland is much lower than an average in the EU (13% against 24%);  It is a consequence of the extensive usage of coal (hard/brown) as the source of primary energy. source: EuroGas Source: IEA UE Poland Sales of natural gas in Poland – basic information Gas market in Poland (2/2) Gas market in Poland (2/2) Total gas sales in 2008: 13,9 bcm Primary energy balance EU vs Poland Natural gas sales by sector – EU (2007) Natural gas sales by sector – Poland (2007)

8.  Gas production: increase gas production from 4,2 bcm to 6,2 bcm;  LNG: 1 million tonnes of LNG secured from Qatar;  Interconnectors: plans (ongoing analysis) to build two or three interconnectors on western and southern borders of Poland in order to extend Polish gas grid connection to EU network;  NW gas: gas supplies from Norwegian Continental Shelf;  SE gas: planned interconnector will reach Baumgarten gas hub and meet Nabucco pipeline; Assumptions for diversification Current sources of gas - 2008 Optimal sources of gas - 2015 Gas Supplies and Transport Routes Gas Supplies and Transport Routes Eastern direction 66% Own production 28% Western direction 6% Eastern direction 40% Own production 30% LNG and Western direction 30%

9.  In April 2009 PGNiG and Qatargas Operating Company signed the Head of Agreement in which Qatargas agreed that approx. 1 million tonnes of LNG will be supplied annually to LNG terminal in Świnoujście for a period of 20 years, starting from 2014;  Concurrently PGNiG and Qatargas are conducting talks with a view to entering into a Sales and Purchase Agreement. 9 Location of terminal: Reloading capacity of terminal: LNG tanks capacity: Implementation date: Świnoujście Phase 1 – 2.5 bcm/annually Phase 2 – 5.0 bcm/annually Phase 3 – 7.5 bcm/annually 2 x 160,000 m 3 2014 LNG deliveries to Poland LNG deliveries to Poland Basic information – LNG Project LNG deliveries – PGNiG S.A. Companies responsible for LNG terminal construction: TSO Gaz-System/PLNG

10. Gas supplies from NCS to Central Europe Skanled Project Skanled Polish coast Niechorze NCS Baltic Pipe Danish transmission system Main facts:  5 May 2009 the Skanled Project Group decided to suspend the Skanled project, due to: - increased commercial risk; - withdrawal of majority of Scandinavian companies; - uncertainties related to timing of new field developments on NCS and gas supplies;  June 2009 – OGP Gaz-System decided to suspend the Baltic Pipe project.

11. 2009  PGNiG SA owns and uses 6 underground gas storage facilities:  5 UGS in partly depleted natural gas fields: UGS Brzeźnica, UGS Husów, UGS Strachocina, UGS Swarzów and UGS Wierzchowice  1 UGS in salt cavern: UGS Mogilno.  Working capacity for 2009/2010 (bcm) - 1.6  No of storage facilities in 2015 - 9  Target working capacity (bcm) – 3.8  Estimated CAPEX (PLN bn) – 3.0 UGS Mogilno UGS Swarzów UGS Brzeźnica UGS Husów UGS Strachocina UGS Wierzchowice UGS Daszewo UGS Kossakowo UGS Bonikowo Existing UGS Planned UGS UGS expansion Planned UGS for low-methane gas Expansion of Underground Gas Storage Facilities Basic data 2015+ Recent changes Current working capacity: 1.6 bcm Target working capacity: 3.8 bcm  1 November 2008 – establishment of PGNiG – SSO Branch in Warsaw;  31 December 2008 – PGNiG appointed for Storage System Operator in Poland;  May 2009 - Market scereening process conducted by the SSO Branch  16 June 2009 – Tariff for storage services approved by the Energy Regulatory Office;  June 2009 – Storage Code published for public consultations. UGS – construction and development

12. International expansion of PGNiG started with the acquisition of a stake in E&P concession on Norwegian Continental Shelf (North Sea Skarv, Snadd and Idun fields). Currently, PGNiG undertakes E&P activities also in the following regions: Egypt (Bahariya field), Libya (Murzuq basin), Pakistan (Kithar concession block), Southern Denmark. Norway Pakistan Tunesia Egypt Libya Denmark PGNiG exploration and production activities will concentrate on Norwegian Continental Shelf and in the Maghreb region. Currently, PGNiG plans to engage in new projects in Northern Africa, with Algeria as a potential new country of interest. Development of Oil and Gas Exploration & Production

13. Natural gas demand New investments in power sector Prospects for future gas consumption * Ministry of Economy – forecast EC Stalowa Wola 400 MW EC ZA Tarnów 200 MW EC Bydgoszcz 100 MW EC Lotos 230 MW Pozosta?e gazowe projekty energetyczne 1000 MW EC Stalowa Wola 400 MW EC ZA Tarnów 200 MW EC Bydgoszcz 100 MW EC Lotos 230 MW Pozosta?e gazowe projekty energetyczne 1000 MW Other gas fired power projects 1000 MW Planned capacity ≈ 2000 MW Planned gas demand ≈ 2-2,4 bcm Gas sales to power plants (2007)  Share of sales to power plants in total gas sales is currently very low in Poland.  In Poland only 7% of gas is sold to power plants, whereas in Hungary 35% (both countries have almost equal total gas sales).  Most probably the situation will change in the future (as a result of investments in the power sector) and sales to power plants will increase. * Source: Eurogas

14. Thank you!