Lithuania resurrects tax on shale gas

In the first three to four years of gas production from combustible shale in Lithuania, its production will not be taxed; Subsequently, the tax rate will be 15%. This decision was made by the Strategic Committee of the Government of the country, RIA Novosti reports with reference to the Minister of Environmental Environment Valentineas Mazuronis.

According to him, the committee instructed him to create conditions attractive to foreign investors in the sphere of shale gas production. The government decided to introduce Poland's experience here. However, before the announcement of the contestation of shale gas, it is necessary to convince the country's residents of the profitability of the industry and find investors.

Countering the public plans for the production of shale gas in Lithuania in May 2013 to approve the more stringent conditions of reconnaissance and extraction of this fuel than was originally planned. In addition, it was discussed the possibility of imposing this kind of activity with a base tax of 40%. Under these conditions, the only contender for shale gas production in Lithuania - the American company Chevron - in October 2013 refused to work in the country.

Now, in view of the efforts made by the Government to reduce fuel and energy dependence on Russia, the country's authorities hope to switch to the use of local fuel. In addition, Lithuania relies on liquefied natural gas: until the end of 2014, a terminal for taking tankers with LNG should open in Klaipeda.