India to launch its Maiden Bid Round for Exploration of Shale Gas during the XII Plan

Directorate General of Hydrocarbons (DGH) S. K. Srivastava announced on 22 November 2011, the Indian government’s decision to launch its maiden bid round for exploration of shale gas during the XII Plan (2012-17) with an aim to meet its rising energy needs.

The DGH had initiated steps to identify the prospective areas for offering. As per current available data, six basins — Cambay (in Gujarat), Assam-Arakan (in the Northeast), Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo Gangatic basins, hold shale gas potential.

Legislative changes would be needed for shale gas exploration. Simultaneous exploitation of different sources such as coal bed methane would also be required.

Under the current policy, exploration and production of conventional oil and gas and coal bed methane (CBM) is allowed. However, shale gas exploration faces several challenges such as the availability of water and vast tracts of land.

India's gas demand was likely to rise from 290 million standard cubic metres a day in 2012-13 to 470 mscmd in 2016-17. As against the demand, domestic supply will increase from 124 mscmd to 220-230 mscmd only.

The balance will have to be met through either imports or through unconventional energy sources such as shale gas. India has signed an MoU with the U.S. for assessment of shale gas resource and is currently developing policy framework to exploitation of the resource.

About Shale Gas

Shale gas or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface is the new focus area in the U.S., Canada and China as an alternative to conventional oil and gas for meeting the growing energy needs.