Lithuania Puts Shale Out to Tender for First Time

Lithuania's Ministry for Energy has announced that it has launched the first ever formal process in the country for shale gas, saying the resource could be a reliable and cost effective alternative to Russian supply.

In a statement released yesterday, the Ministry said that it was opening the tender process for two areas, the 1,800 square kilometre Šilutė Tauragė and the 281 square kilometre Kudirka-Kybartai. 

The tender process, which was originally expected to be opened in March this year, will open up both these areas for shale gas licence applications. Additionally, the tender process will be open to oil shale and conventional oil and gas applications. The deadline for tendering is set for four months from now with successful bidders expected to be announced early next year.

The Ministry said that shale gas could be a viable alternative to Russian gas, on which it relies heavily as its sole supplier.

"Shale gas could provide a realistic and cost-competitive alternative to the current single supplier Gazprom," the statement said.

Lithuania is just one of several companies currently seeking to diversify its supply away from Gazprom. In recent months, the country has looked to LNG to help break its dependence on the Russian giant. Last month, the government decreed that a new LNG terminal under construction in the country must provide at least 25 per cent of Lithuania's gas needs. This, Lithuanian Prime Minister Andrius Kubilius said, was necessary in order to break the "shackles" of Gazprom supply.

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