Deposits of the shales which are gas carriers occur within the Szczecin – Rzeszów strip. Exploitation of the resource which would make Poland independent of gas supplies and which would even make us the leading exporter of gas could be carried out on many parts of this site.
The size of Polish deposits is estimated at 5.3 trillion cubic meters (report of the Environmental Investigation Agency which covered 32 countries). Such reserve would meet Polish demand for the resource for approx. 300 years. In consequence, its extraction is important because of the energy security but also it would allow us to fulfil the requirements of the European Union which looks reluctantly at Polish model of energy industry which relies mainly on coal.
At present, we consume approx. 14 billion cubic meters of gas per year. The process of fracking, in other words fracturing and making fissures in the rock, has been a technology known and developed for 60 years. “In Poland we produce coal, gas, oil, copper ores. So, we have experience in the mining industry and extraction of the shale gas will not be a special challenge. Fracking has already been done,” says Andrzej Jagusiewicz, Chief Inspector of Environmental Protection. Then why does it raise so many emotions? Veto is exercised by environmentalists who claim that the mixture used for extraction may contaminate subterranean waters. To release gas from the shale deposits, usually a mixture of water, sand and chemical substances, which are the subject of the environment defenders’ fears, are used. “The quantity of chemicals used during fracturing is minimum and constitutes as little as 0.5 – 2% of the total volume of the pumped liquid, and chemical substances include such compounds as table salt (sodium chloride), citric acid and guar gum, i.e. substances used in food and cleaning products or cosmetics,” says Deputy Minister of State Treasury, responsible for oil and gas sector, Mikołaj Budzanowski.
In the opinion of Andrzej Jagusiewicz it is not possible for such compounds to penetrate into water which we use as the fracking is done at the depth of approx. 4,000 m and we take water for daily use from the depth of approx. 200 m. Additionally, it is separated by layers of impermeable rock. Another issue is reasonable use of water which we do not have enough and we have to conserve it. For Andrzej Jagusiewicz it is obvious that water should be reused. And that extraction of gas from the shale is an element of sustainable country development and sustainable development assumes close control (for which we have legal and institutional tools) and care of the environment.
The first company which made exploratory drills in Poland is Polish Oil and Gas Company (PGNiG). Presently this company holds the largest number of concessions for explorations. “The entire process of exploration and afterwards the potential extraction involves huge investments on the part of exploratory companies. Additionally, one has to take into account the costs of constructing infrastructure for shale gas transportation to users both domestically as well as abroad. If we add the necessity to make changes in the Polish law, it is easy to notice that we will have to wait for the first success in the shale gas exploration,” says Maciej Nowakowski, Director of the Exploratory Work Preparation Office at PGNiG.
Industrial extraction could start even in 10 - 15 years. As Jan Chadam, President of Gaz-System (a company responsible for the transmission system), assures in turn, the infrastructure will be ready. He adds that special sections of gas pipelines which will connect Poland or will facilitate the connection with the Czech, Slovak, Baltic states and German systems to enable gas transmission not only from East to West are planned or are being constructed. The company is also ready to connect regions of Poland where the gas is present with the regions which will need it. “Preparatory work takes the longest. The construction itself will take about a year,” says Jan Chadam. “The matters related with the environmental protection during the extraction of hydrocarbons are now governed by over 130 regulations, acts and EU directives. Anyone who wants to conduct exploratory operations has to obtain positive decision on environmental constraints preceded by a stage of detailed monitoring of the impact on fauna and flora. Without such procedures it is not possible to commence the drilling work,” says Mikołaj Budzanowski.
On the other hand, with respect to the profitability for the State Treasury, local authorities and exploratory companies, the law is not explicit for the time being. The new act, Geology and Mining Law (adopted on 28 April) introduces tender proceedings for the concessions (now, for mining usufruct). Gas, as a strategic resource, remains the property of the State Treasury, and not of the holder of land (profit sharing between the companies and the state is not defined). Districts (gminy) in the territories of which the work will be carried out benefit from economic activation but also from environmental and exploitation fees (60% will stay in the district and 40% will go to the National Environmental Protection and Water Economy Fund).
Source: Dziennik Gazeta Prawna Biznes i Energia, page: 3, 2011-07-14, by Karol Dominowski