CEEP President Tells Lithuania Not to Give Up on Shale

Lithuania could benefit massively from shale gas, the president of the Central Europe Energy Partners (CEEP) has said.

Speaking to Lietuvos Rytas, Pawel Olechnowicz, who is also CEO of Grupa LOTOS, said that shale gas could prompt a revolution for Lithuania, which is currently seeking ways to diversify its energy sources to ensure its security of supply.

"Shale gas may trigger a real revolution in the energy sector," he said. "It is a huge opportunity for Lithuania to enhance its energy independence from the east and to drive down the prices on the local market. Extraction of this gas may trigger positive economic and political developments."

Lithuania has only recently taken its first steps into the shale gas arena with the country launching a formal tender process for shale -- the first in Lithuania -- at the end of June 2012. Launched by the country's Ministry of Energy, it is hoped that shale gas may prove to be a viable alternative to the country's current dependence on Russia for its energy needs.

"Shale gas could provide a realistic and cost-competitive alternative to the current single supplier Gazprom," the Ministry said at the time.

Currently, Lithuania relies on Russian major Gazprom for the majority of its gas supply. However, the country has recently switched its attention to alternative sources of gas supply in order to break what it calls the "shackles" of Gazprom supply.

Earlier this year, Lithuania passed a law that means that 25 per cent of its gas supply must come from an LNG terminal due to be constructed. The terminal is expected to be completed by the end of 2014.