New Romania government wants moratorium on shale gas

Romania's new government will seek a moratorium on shale gas drilling, putting on hold plans by US oil giant Chevron to tap reserves in eastern and southern Romania.

"An immediate moratorium will be placed on shale gas exploitation until European studies underway regarding the impact of hydraulic fracturing on the environment are finalised," the new government's economic programme released Friday reads.

Prime Minister-designate Victor Ponta is expected to win a parliament vote of confidence on his cabinet line-up and its programme on Monday.

The leader of a left-wing alliance, the Social Liberal Union (USL, opposition), Ponta has repeatedly criticised the outgoing government's green light to shale gas exploration.

Companies including Chevron of the US, Canada's Sterling Resources and Hungary's MOL plan to tap the reserves.

Chevron has a concession on 600,000 hectares (1.5 million acres) in the eastern Barlad area and three others in the southeast Dobroudja region, near the Bulgarian border.

Country manager Thomas Holst told AFP the commpay planned to drill the first exploration well in the second half of 2012, depending on the permitting and licencing process.

Shale gas drilling is based on hydraulic fracturing or 'fracking', a technique using high pressure injections of water, sand and chemicals to crack open rock and release oil and gas trapped inside.

Environmentalists say fracking is harmful and note that it has been blocked by countries such as France and Bulgaria, while the states of New York and New Jersey have imposed a drilling moratorium.

Other US states however have pressed ahead with shale gas development, driving hopes the United States could soon be a global exporter of natural gas.