GRAPHICS

Poland's Shale Gas Potential

Oct 9, 2013 | 17:55 GMT

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Poland's Shale Gas Potential

Because of its domestic coal reserves, Poland is a relatively energy-independent country. However, when it comes to natural gas, Poland relies on imports. Two-thirds of Poland's natural gas demand is met through imports, about 80 percent of which come from Russia (which supplies around 32 percent of the European Union's total natural gas imports). According to a statistical review by BP, Russia supplied 9 billion cubic meters of the 16.6 billion cubic meters of natural gas Poland consumed in 2012. Poland is trying to lessen Russia's importance as a natural gas supplier through a number of diversification efforts.

Poland is one of the strongest proponents of shale gas exploration in Europe. Warsaw hopes to profit from a boom in its shale gas sector similar to the one the United States experienced. However, although shale gas is being extracted at low quantities at a Polish test well, the sector's long-term prospects remain uncertain due to geological, infrastructural and legislative hurdles. Poland also has more concrete and shorter-term diversification plans. At the end of 2014, a liquefied natural gas import terminal on Poland's Baltic Sea coast is expected to be completed and will have an initial import capacity of 5 billion cubic meters per year. Depending on demand, it could be expanded to 7.5 billion cubic meters.