Poland is in the front line of Europe’s shale gas operations. According to the Environment Ministry’s data, 18 research drillings were successfully conducted and 14 another were under preparation. Still these drills are not enough to reasonably assess the actual potential for commercial use of shale gas. Even if the existence of gas is confirmed, it does not necessarily mean that there is potential for commercial use. From the tests made so far, the only concession, which may hold a satisfying amount of gas is PGNiG’s Wejherowo concession in Lubocin.
Apart from uncertain resources, experts mention several other potential barriers, which may increase the risk for shale gas investors in Poland and may even make such investments unreasonable:
- Protectionism of local service sector especially regarding drilling firms
- Restrictions to foreign drilling firms to enter the Polish market (for example a requirement to operators of drilling equipment to have local permissions)
- Long lasting procedures for importing the drilling equipment from outside the EU
- The necessity to announce tenders for drilling operations;
- Uncertainty concerning the price of gas on the regulated market;
- Complicated regulation concerning access to geological information and high price of such information;
- Changing and unclear regulation regarding the environment protection.
This is only a short extract from all the insights provided in the IntelliNews Special Report, Poland Shale Gas Sector; read more and purchase>>
Filed under: Energy, Oil & Gas, Poland, Utilities
