Shale gas out of stricter law for environmental studies, Chevron and PGNiG joined forces

6. January, 2014 News No comments
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Once the chief economist of the International Energy Agency (IEA), Faith Birol said: “The Polish unconventional gas has a potential to change the situation of Poland and it also has a potential to change the whole EU gas market for decades”.

 

There is no doubt that unconventional gas provides the opportunity to respond to the challenge of reducing CO2 emissions, strengthening economic competitiveness and gaining energy security in the gas supply sector. Despite these pros, public opposition is strong on environmental grounds and demands stricter law on environmental studies.

According to Reuters: “EU governments endorsed an outline deal on new rules to assess the impact on the environment of projects such as oil and gas exploration, after removing references to shale gas that had blocked agreement. (…) EU ambassadors approved a revised draft law, updating legislation first agreed more than two decades ago and for the first time including an assessment of a new project’s impact on climate change.”

This is an important information for Chevron and PGNiG, which joined forces on shale gas exploration projects in Poland.

Two companies signed a Memorandum of Understanding on December 12th, 2013. The collaboration would reduce the costs and increase the pace of exploration works, also potentially provide proper technical development. Details of partnership, the joint project between Chevron, experienced in challenging gas production and exploration and Polish company, are expected to be signed later in 2014.

If the cooperation is successful, they might set up a joint company in which both will hold a 50 percent stakes. The venture would bring two concessions from PGNiG (Tomaszów Lubelski, Wiszniów-Tarnoszyn) and two from Chevron (Zwierzyniec, Grabowiec).

concession

Fig. 1. Concessions coming under agreement (source: rp.pl).

 

Should be reminded that exploring for natural gas from shale formations in southeast Poland is Chevron’s first activity in Europe.

American company operates four concessions, since 2009 and holds 100% each of them (together nearly 4,433 sq km). They include:

  • Frampol concession – 1,200 sq km
  • Grabowiec concession – 1,200 sq km
  • Kraśnik concession – 1,200 sq km
  • Zwierzyniec concession – 800 sq km.

 Chevron Poland_550x300

Fig. 2. Chevron’s investment in Poland (source: chevron.pl).

Sources: www.reuters.com, www.chevron.com, www.pgnig.pl

Photos from: www.bls.gov, www.theguardian.com

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