Polish firms sign framework shale gas exploration deal
WARSAW -- Five major Polish listed companies have signed a framework agreement aimed to accelerate shale gas exploration work. In line with earlier announcements, these companies are: natural gas producer PGNiG, copper and silver producer KGHM and the three biggest power utilities: PGE, Tauron Polska Energia and Enea.
In accordance with the agreement, estimated expenditure on gas exploration, appraisal and production at the first three pad locations (Kochanowo, Czestkowo and Tepcz at the site of PGNiG' s Wejherowo license) will amount to PLN 1.72bn (EUR 0.4bn).
The investments are expected to be made only in 2013, according to KGHM' s vice president Dorota Wloch. First gas produced as part of the joint project may be expected to flow in 2016.
PGNiG' s representatives also announced that Poland' s biggest downstream oil concern PKN Orlen and Canada-based energy producer Encana are interested in cooperation in this area. According to earlier information, commercial shale gas production is expected to be launched in Poland in 2014-2015.
In March, the State Geological Institute (PIG) estimated that Poland' s shale gas deposits are at least around 345-768bn m3. In April of 2011, the U.S. Energy Information Administration (EIA) estimated that Poland' s technically recoverable shale gas resources are 187tr cubic feet (or around 5.3tr cu.m.).