26.11.2012 PGNiG involved in Twelve Blue Gas projects
Polskie Górnictwo Naftowe i Gazownictwo SA, as the Leader of the Consortium under the name of Polskie Technologie dla Gazu Łupkowego (Polish Technologies for Shale Gas), filed 12 entries for the Blue Gas competition with the National Centre for Research and Development. The projects carry a total budget of approx. PLN 219m. Half of that amount will be covered by subsidies from the National Centre for Research and Development, and the other half - by contributions from industry partners forming the Consortium.
Through its involvement in the scheme, PGNiG will be able to take part in developing innovative technologies that will find practical applications in the exploration for and future production of gas, especially solutions designed to protect the environment.
Apart from PGNiG, the Consortium includes Polish upstream operators such as Lotos Petrobaltic (industry partners), as well as the AGH University of Science and Technology of Kraków, the Oil and Gas Institute, the Gdańsk University of Technology and the Warsaw University of Technology (academic/research partners).
PGNiG is the only partner to be involved in all 12 projects put up for competition, as opposed to the other members of the Consortium, which participate in selected projects only. This results from different business needs of the industry partners and reflects the competence levels of the individual universities and research institutes.
In the case of projects in which other industry partners are involved besides PGNiG, our financial contribution amounts to either a half or one-third of the total budget. Depending on the value of its contribution, PGNiG would have access to all project deliverables (1/2 of the budget) or an option to use project deliverables in its future production activities (1/3 of the budget). For the most part, PGNiG's contributions are non-cash assets, which further enhances the project's attractiveness. As an example of such in-kind contribution, PGNiG would make available to its academic/research partners core sample data, 2D and 3D seismics, production materials, etc.
The competition is to be concluded over the next month or two. If the organisers decide to award any of the projects to the Consortium, as the next stage (expected to take place in Q1 2013) the Consortium Leader, i.e. PGNiG, would execute detailed agreements on financing of the projects with the National Centre for Research and Development. Subsequently, the projects eligible to receive subsidies from the National Centre for Research and Development will be launched.
The "Blue Gas - Polish Shale Gas" competition was announced in September 2012 by the National Centre for Research and Development and the Industrial Development Agency. It aims to support large, integrated R&D projects designed to develop solutions that would promote widespread use of innovative shale gas extraction technologies. The key objective behind the Blue Gas programme is consistent with PGNiG's strategic plans to intensify work related to the exploration for and production of unconventional hydrocarbons.
The competition covers three main thematic groups: 1) Exploration, appraisal, inventory taking and investigation of reservoir properties for shale gas plays, as well as classification of resources, 2) Field development, production and technological aspects of field completion for unconventional hydrocarbon deposits, and 3) Environment protection. These are further sub-divided into 12 detailed thematic areas.
The total budget of the programme for consortia of large enterprises is PLN 220m, of which PLN 110m will be covered by subsidies from the National Centre for Research and Development and PLN 110m - by (cash and non-cash) contributions of industry partners. There is an option to double that amount by taking out a loan (on commercial terms) from the Industrial Development Agency.
Twelve expert teams were appointed to draw up the entries. The teams included academics from universities and research institutes, who were responsible for the scientific and research content of the projects, as well as industry partners, whose task was to adapt the scientific content to the industry's requirements.
Each application was prepared by a group of scholars led by prominent experts in the respective fields of science, in close cooperation with industry partners. The whole group of scholars and researchers engaged in the work of the Consortium includes over 100 persons, most of whom hold professor degrees.