The successful operation of the First Gas Company in its 20 years of existence has been most influenced by the liberalization of the gas market in Croatia and the integration of the European energy market. Therefore PPD today has companies in Hungary, Switzerland, Italy, Slovenia, and Bosnia and Herzegovina, from which it operates throughout Europe. The company is engaged in the trade, import, sale, and supply of natural gas, headquartered in Vukovar and fully owned by Energia naturalis (ENNA). We spoke with PPD Management Board members PPD-a Antonija Glavaš, responsible for gas sales and coordination of international teams, and Ivanom Ivančić, responsible for gas transport and storage.
You are celebrating 20 years of operation. How do you view the business journey behind you?
Antonija Glavaš: – It has been interesting and very challenging. Our success and growth are based on continuous learning and quick, bold decision-making. Two key moments were the liberalization of the gas market of the Republic of Croatia and the integration of the European energy market. We can say that we were leaders in both processes in the Croatian market. Alongside these, very important circumstances are the digitalization of business and the continuous development of our key competence, colloquially called – trade. The liberalization of the gas market in 2012 was a topic that had been on the table for years and should not have surprised anyone. We had the advantage that our business partners were already operating in the European Union market, so by learning from them, we gained the necessary knowledge about EU regulations. On the other hand, we were excellently familiar with the local market. This proved crucial at the moment when the Croatian market was also liberalized. In 2012, we managed to import natural gas for the first time. Today, we have an excellent regulatory department that monitors everything happening in Croatia, but also in Brussels. Our business decision-making is, among other things, based on continuous monitoring of regulatory and legislative trends, without which it is impossible to operate in the integrated EU energy market. Understanding the needs of our business partners, knowledge of the domestic and foreign markets, numerous experts we employ, and a clear vision of our management have brought us to the position of a strong, reliable, long-term, but also very flexible business partner.
What business decisions have been extremely important for your operations so far?
Ivana Ivančić: – There have been several realized decisions that meant important breakthroughs in our business. This certainly included the first import of gas at the moment of market liberalization. Then, the expansion abroad, that is, the opening of companies and gathering teams in Hungary and Switzerland. A ten-year contract with Gazprom strengthened our position in the domestic and especially international markets. Namely, supply security is an extremely important factor in the gas business, and although today we operate and cooperate with numerous suppliers in the EU market besides Gazprom, such a long-term contract is an important element for risk management. Another important decision that defined our business was the decision to enter European gas exchanges. Since Croatia is part of the European market, we realized that it would be good for us to try trading on gas exchanges ourselves. Today, we trade on six European gas exchanges. We have also concluded a number of new contracts with foreign partners and expanded our portfolio, opening up opportunities for even more business.
In Zagreb, Lugano, and Budapest, your teams conduct business in the most important European wholesale natural gas markets. What does PPD ensure by being present in them?
Antonija Glavaš: – In foreign markets, in our foreign companies, we employ local experts, which makes our overall team exceptionally open and gives us a serious competitive advantage in the speed of generating knowledge, and thus in the speed of entering new markets. This way of doing business gives us an exceptionally broad picture, and the knowledge and information we have are our greatest advantage. We often emphasize that the integration of the EU market is an exceptional opportunity for all business participants, but it requires investment in knowledge, people, and business support. At the same time, in our business, building a well-structured portfolio ensures us not only sufficient quantities of gas but also the necessary flexibility. Speaking of gas supply and sales, we are actively working in the Hungarian, Italian, and somewhat in the Slovenian market. The Swiss company is more oriented towards trading and hedging, as unfortunately, banks in our country do not offer such products, nor do we have such a type of market locally.
