MOSCOW (MRC) -- Polish biggest chemical holding Grupa Azoty is in talks to start buying natural gas in the United States, the company's CEO Krzysztof Jalosinski told. The company could have it transported through the LNG terminal in Swinoujscie, now under construction, said Warsaw Business Journal.
"It is not an easy project, as in the USA the export of gas requires special permits. It is possible, however," Mr Jalosinski said.
In recent years, thanks to technological developments that allow for the extraction of gas trapped in shale rock, the US has become the world’s largest producer of natural gas. As a result, the fuel has become much cheaper in the US than in other countries. A thousand cubic feet of natural gas costs USD3-4 in the US, while in Europe the same amount costs around USD12.
However, US law allows for the export of gas only to countries with which it has a free-trade agreement. That excludes Poland. The US and EU are currently working on a comprehensive free-trade agreement, but that deal, which will be complicated and huge in scale, will likely take years to hammer out, and currently talks are on hold due to the US government shutdown.
At the same time Grupa Azoty has decided to withdraw from plans to engage in Polish shale gas exploration and extraction. "We do not plan capital involvement in gas extraction either in Poland or abroad," the CEO said.
As MRC wrote before, Exxon Mobil Corp. will stop exploring for natural gas in shale formations in Poland, dealing a blow to hopes the country could replicate the shale-drilling boom that revolutionized gas production in North America. Major companies including Exxon, Chevron Corp. , ConocoPhillips and Marathon Oil Corp. flocked to Poland in recent years after the country started offering incentives to lure international firms. Poland is hoping to reduce its long-term dependence on gas imports from Russia.
MRC