Thaindian News

New Delhi, March 11 (IANS) India will identify areas that have the potential for shale gas, or hydrocrbons trapped in sedimentary rocks, and also formulate a policy soon to tap what experts say will become a rich global source for fuels in the years to come.

“Based on geo-scientific data gathered so far during exploration of conventional oil and gas, few onland sedimentary basins and areas in India appear to be prospective in terms of shale gas deposits,” Minister of State for Petroleum R.P.N. Singh said.

“Based on the identification of prospective areas and assessment, and after formulating an appropriate policy, steps would be taken for exploration and exploitation of shale gas resources in the country,” he told the Lok Sabha, the lower house of parliament.

He said in a written reply that a pact had been signed last November with the US, a global leader on shale gas, for joint technical studies in India, as also to share technologies and ideas on formulating a regulatory framework with safeguards.

“Detailed studies are being taken up to identify the prospective basins and areas and estimation of shale gas resources in the country,” said the minister, referring to India’s efforts towards energy security.

“The reserves and production potential of shale gas will be known only after resource estimation, award of blocks and subsequent exploration and production activities to be carried out in the awarded blocks.”

Earlier this year, the state-run Oil and Natural Gas Corp had made the biggest shale gas discovery in the country yet at Durgapur in West Bengal, spread over some 12,000 sq km. This was the first such discovery in Asia, the company said.

Among other Indian companies, Reliance Industries had acquired a 40-percent stake for some $1.7 billion in the US-based Atlas Energy’s share gas assets in the eastern parts of the North American nation. It is also interested in prospecting in India.