11 April 2013 15:48 [Source: ICIS news]
LONDON (ICIS)--Poland is unlikely to see major shale gas production this decade, investment bank WOOD & Company said in a note to investors on Thursday.
Looking at the progress of existing shale gas exploration projects in Poland and the geological difficulties evident in accessing the unconventional gas, the bank concluded that shale gas could only be a cheap-feedstock game-changer for the country's petrochemical and other industries after 2020.
“We do not see major shale gas production this decade – and, hence, we see [dominant Polish gas producer and distributor] PGNiG's domestic gas production targets as far too ambitious,” said Robert Rethy, an analyst at Prague-based WOOD & Company.
“At the same time, we do believe Poland may well produce material shale gas at some stage, but the volumes may not be high enough – on an individual company basis, in particular – to be a game-changer for the large-cap domestic oil and gas companies, PKN Orlen and PGNiG, which are potentially pouring billions of Polish zloty into exploration,” he added.
Rethy cited latest analysis from Warsaw-based Witek Engineering Services (WES) oil and gas consulting company, which concludes that shale gas production in Poland may not go commercial on an industrial scale before 2018, while annual production of 5-6bn cubic metres may be reached by 2020-25.
In early March, Jacek Krawiec, the CEO of Orlen, told the IHS CERAWeek energy conference in Houston that his company recognised that the global energy map has been redrawn by the shale gas revolution in the US and that he was convinced that Europe's shale gas resources offered the EU a much-needed opportunity to boost its economic growth.
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