As shale drilling slows down, Poland looks for LNG suppliers

Oil rig
Source: DollarPhotoClub

Despite Polish government’s commitment to shale – further strengthened by the threat of potential disruptions in the delivery of Russian gas – the pace of shale exploration in Poland has slowed within the last couple of months – Polish portal Gaz Lupkowy reported. Only three wells were drilled within the last three months and no drilling work is being carried out at the moment.

In total, sixty-six wells were drilled in the period from January to September 2014, with more drilling planned for the later part of this year by Chevron, San Leon, Lane Energy and PGNiG.

Hydraulic fracturing has recently been carried out by two companies: Lane Energy and Orlen Upstream, which reported work on its Stoczek-OU1K shale well. The well was horizontally drilled to the length of 4,307 metres and fracked in stages. On 10th September the company reported carrying out fracking procedures on the eight of the ten stages of the well. The company believes that it will be able to establish the productivity of the well within the next month.

So far, there have been twenty four fracking operations carried out on Polish wells, including ten in horizontal wells.

What’s more, last month three companies have decided to cease exploration work in Poland: Baltic Energy Resources Ltd gave up its offshore concession, Silurian Ltd gave up its concession in Mazovia and the Lublin area, and ECO ENERGY Ltd in the Kuyavian-Pomeranian district.

Meanwhile, with exploration work stalling, Poland is looking for partners in the United States and Canada from whom it could import liquefied natural gas (LNG) for its terminal due to be launched next year, Polish Deputy Economy Minister Ilona Antoniszyn-Klik said.

“We are ready to find trade partners in the United States and Canada, who would supply gas to the newly-constructed LNG terminal in Swinoujscie,” she added.

“For now the prices offered by U.S. companies seem not very competitive for Polish clients, but there is a chance that prices will fall on the global market in the near-term.”

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