Enea, KGHM, PGE, PGNiG and Tauron are set to search together for shale gas in Poland Shutterstock

Polish utility Enea is set to join state-owned giants PGNiG, Tauron, PGE and KGHM in exploring and potentially extracting shale gas from Polish deposits, Poland’s gas monopoly announced in late April.

“The joint effort of all partners will make it possible to intensify the exploration for shale gas,” Joanna Zakrzewska, press officer at PGNiG, said in a statement.

The firm is leading efforts, called for by the Polish government, for state-controlled firms to invest and cooperate in the sector. 

Energy provider PGE, energy group Tauron and copper and silver miner KGHM signed three separate letters of intent with PGNiG regarding cooperation in shale gas projects in January. 

Although they bring together phenomenal investment capacities, none of these companies has experience in searching for or exploiting unconventional gas, and some analysts are skeptical that the cooperation will bear much fruit. 

“These companies are forced by the State Treasury; they would most likely never think of cooperating with each other otherwise. Nothing will come of this,” said Łukasz Prokopiuk, analyst at DM IDM.

But Łukasz Cioch, general director of the Tischner European University Centre for Energy Studies in Kraków, did not share this skepticism. “Exploring shale gas in Poland requires a cooperative approach and strong business-focused leadership to leverage the positive effects of scale and optimize risk distribution. As private companies in Poland are nowhere near the potential required, I think this type of cooperation can be justified,” said Mr Cioch. 

“In many respects, Poland is pioneering shale gas exploration in the EU, and, as long as it is business-relevant and not politically motivated, this type of joint-venture could contribute to an increasingly positive investment climate, especially for American and Canadian investors,” he added.

Alice Trudelle