New shale gas deposits discovered in Poland

More shale gas deposits have been discovered in the Lublin region, mid-eastern Poland,  Dziennik Gazeta Prawna newspaper informs.

The full results of the exploration work should be known in October and test drilling is expected to start next year.

Lublin deposits are the property of Polish oil concern Orlen and are located 2.5 to 4.5 km underground. Foreign companies holding exploration licenses are to start drilling soon.

Unlike conventional natural gas, shale gas is not found in easily accessible cracks, therefore its exploitation requires fracturing the gas-bearing rock. Initial unconfirmed estimates by American companies put Polish shale gas deposits at 1.5 trillion cubic metres.

Poland uses approximately 14 billion cubic metres of gas per year. According to experts shale gas deposits could cover Poland’s demand for gas for 100 years. At the moment, the profitability of shale gas exploitation is at a level similar to the exploitation of natural gas, experts say.

Orlen has signed 15 letters of intent with foreign contractors, including Eni and Shell. In the past two years, the Polish Ministry of the Environment issued 58 licenses to American companies for shale gas exploration. The license holders include: Exxon Mobil, Chevron, ConocoPhillips, Lane Energy. Polish Oil and Gas Company (PGNiG) has 11 licences.

Source: Polish Market Online