New Europe: Shale gas is Poland’s favourite bogeyman weapon

Shale gas is Warsaw’s favourite bogeyman weapon as Poland’s dominant gas distributor known as PGNiG is seeking lower prices in a delivery contract with Russian gas monopoly Gazprom. PGNiG is struggling to make a profit, squeezed by its contract with Gazprom and domestic market prices. Poland’s annual gas imports stand at around 10bn cubic metres of gas each year, with around 90% of that from Gazprom. The price in PGNiG's deal with Gazprom is linked to oil prices, which have been growing steadily over the past several months. 

But Poland's Treasury Minister Mikolaj Budzanowski said on 15 March that the country could start commercial production of up to 1bn cubic metres per year in late 2014. The deposits, he claims, could be up to 2trl cubic metres, enough to add to Poland's energy mix for decades and help the country limit its reliance on neighbouring Russia.  MORE