Five companies concluded an agreement on shale gas exploration

An agreement of the Polish companies - PGNiG, ENEA, KGHM Polska Miedz, PGE and TAURON Polska Energia - will enable acceleration of shale gas exploration works. Anticipated outlays for the exploration, recognition and mining of gas within the first three locations of Kochanowo, Czestkowo and Tepcz pads will amount to PLN 1.72 bln - as results from the framework agreement concluded on 4 July 2012. The first gas from the common project may flow already in 2016.

Pursuant to the agreement concluded among the companies, the joint works will be conducted on the part of the Wejherowo licence belonging to PGNiG on the following pads: Kochanowo, Czestkowo, Tepcz (KCT project), on which the preliminary research confirmed shale gas appearance. The cooperation of the companies on the Wejherowo licence will cover the area of ca. 160 km². Each of the investors shall have a specific percentage share in the KCT project budget and the estimated outlays for the budget will amount to PLN 1.72 bln maximum. Each of the companies shall participate in the project realisation supervision through the share in the operating committee established for the purpose.

On the stage of the exploration and recognition works PGNiG will be an operator, in accordance with the agreement. With the assumption that the works will be performed in accordance with the preliminary schedule and will terminate successfully, the extraction may commence within three years. On the stage of the deposit mining the operator will be a specially established company which will hold the mining licence.

Mikołaj Budzanowski, Minister of the Treasury

- Thanks to the cooperation of the mining and energetic sector we will make use of the scale synergy thanks to which we will know the efficiency of the deposits faster. This is also a long way to the realisation of the far reaching goal being searching new ideas and developing innovativeness.  Otherwise, we won't be able to face the challenges of the EU climate policy and necessity of CO2 emission limiting. Shale gas may bring benefits to the whole economy and our power sector may become modern and competitive over Europe. Energy companies by engaging in the exploration guarantee the inflow of a cheaper, domestic material for the constructed gas plants.

Grażyna Piotrowska-Oliwa, President of PGNiG

- Today's agreement brings us closer to reaching the strategic goal which is an increase of the independence and competitiveness of the Polish economy. Thanks to the extraction of shale gas it will be possible to ensure stable energy supplies at the prices acceptable by the market. Joining of the economic potential of our partners with the licence resources of PGNiG, knowledge and experience of our employees guarantee a common success. I believe that in the near future we will share substantial profits.

Herbert Wirth, President of KGHM

- Raw material resources are one of the key factors in the contemporary world which influence the economic position of not only companies which mine them but also states which directly or indirectly control them. Material security in the global economy is the future of KGHM. Polska Miedz is one of the few Polish companies having presently a real access to the material resources on the global market. At the same time we engage in the projects of obtaining cheaper energy sources. An access to own gas resources is very important for us for economic and ecological reasons. We count that the project proves our common success.  

Krzysztof Kilian, President of PGE CG

- Diversification of fuels is one of the priorities of PGE Polska Grupa Energetyczna SA. PGE decided to participate in the project since the works conducted so far make the business success attainable. An access to own material resources will reduce the uncertainty resulting from the decisions made within the climate policy.

Maciej Owczarek, President of ENEA

- Such an alliance which is very important for the Polish energy sector is a great chance. Not only of a durable and multiannual change in the present fuel mix and a departure from coal dominance. But also a chance of getting independent from external gas supplies, and therefore is a step towards the enhancement of the domestic energy security. As the ENEA Group we have been monitoring the market and searching for projects and investments aiming at an optimal selection of fuels and Group's development in many possible fields. This agreement indicates a real alternative for a domestic energy sector and our clients, and our voice must be heard here. Gas is an important energy source, thanks to shale gas Poland is able to ensure energy security and independence which is very important for us as representatives of the industry and for our clients.  

Dariusz Lubera, President of Tauron Polska Energia

- The TAURON Group is constructing a new gas unit in Stalowa Wola in conjunction with PGNiG, we are preparing for similar investments in Kedzierzyn-Kozle and Katowice. In a few years we will be an important gas consumer. We are planning to consume almost 2 bln cubic meters of this fuel annually, therefore we decided to engage in its extraction as well. Our experience shows that an access to own raw materials is an important market advantage. In order to ensure the TAURON Group a fuel for production and stable energy supplies for our clients we are mainly planning to use the equity, such as mines or power plants and heat and power plants, and also diversification of supplies of gas fuels.

The cooperation agreement among PGNiG, KGHM, ENEA, PGE and Tauron Polska Energia allows for extending its territorial reach in the future beyond the pads of Kochanowo, Czestkowo and Tepcz. The rules of the cooperation will be however specified based on a separate agreement.

The Wejherowo licence on the part of which the cooperation will be performed is one of the 15 exploration licences for shale gas which are presently held by PGNiG. According to experts it belongs to the most perspective ones. This is confirmed with the results of PGNiG works on the Lubocino 1 borehole where in September 2011 fracking processes were performed as a result of which the gas inflow was noticed. Analyses of the Silurian and Ordovician shale gas confirmed its very good energetic parameters, lack of hydrogen sulphide and a low content of nitrogen.