Shale Gas Exploration In Lithuania By Chevron Receives Presidents Backing

Northern, WI 02/05/2013 (avauncer) - The second largest energy company in US, Chevron Corp.(NYSE:CVX) has the backing of Lithuanian President, Dalia Grybauskaite’s support for shale gas exploration plans, which is otherwise opposed by the lawmakers and residents here.

Spokeswoman Daiva Ulbinaite stated that the president, after a meeting with Chevron’s head of Europe, Eurasia and Middle East, Jay Johnson, is of the opinion that Lithuania needs to assess how far the reserves for shale-gas can go as a Russian natural gas alternative.

In order to lower the energy costs as well as dependency on the Russian supplies, East European countries, including Ukraine and Poland are eyeing shale gas as an alternative. In October, Chevron bought 50% of a Lithuanian oil and gas recovery company. In January too, it was the sole bidder for a tender for shale gas exploration rights here. However, many lawmakers as well as landowners have requested the government to halt the tender due to the fear of ground water contamination caused by gas exploration process. Chevron is planning to meet with the local communities to discuss their concerns.

Lithuania is totally dependent on Russia’s Gazprom OAO (MICX:GAZP) for the supply of natural gas. Lithuania boasts of 180 billion cubic meters of shale gas, which equals to 60 years of gas consumption of the entire country at the current rate of usage. Thus it is keen to rid itself of the dependency.

According to geological studies made by KPMG, the shale gas reserves in Lithuania are at an estimated depth of 2 km, making it easy as well as cheaper to extract. Chevron will assist the Lithuanian company LL Investicijos UAB with a well designed, seismic exploration plan.  Chevron has recently opened its first office in Lithuania to begin the work.

The shares of Chevron Corp.(NYSE:CVX) were up by 0.47% and currently trading at $115.74.

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