Reinvigorating Interest In Poland's Shale Gas Sector
BMI View: The announcement of a shale gas draft law and positive results from San Leon Energy's Lewino-1G2 well could provide important boosts to the country's shale ambitions, after several difficult months due to above and below-ground concerns. However, while these could help lift the negative exploration climate and reassure investors, we maintain that the draft law will not cover the taxation regime, which will be addressed in a separate bill. This bill will be equally important in determining the country's future shale gas prospects.
Poland's Minister of the Environment Maciej Grabowski said that a draft law on shale gas would be ready by the end of the year, as according to a report by the newspaper Dziennik Gazeta Prawna. In addition, Poland-based San Leon Energy reported on the 26th of November that the hydraulic fracturing from its Lewino-1G2 shale well at Gdansk W Concession in Poland's Baltic Basin had been successful and that the results from the well were much better than expected. This comes after its initial report in August that the well was subject to the highest hydraulic fracture pump rate outside the US.
These two pieces of news could provide an important boost for the country's shale ambitions, after several difficult months whereby optimism had faded due to the country's difficult below-ground environment, and unsatisfactory above-ground conditions.
|Shale Gas Effects From 2019 Onwards|
|Poland Gas Consumption and Production (bcm)|