India to push shale gas production, acquire overseas assets

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SME Times News Bureau | 26 Oct, 2012
India will acquire proven assets of shale gas overseas and raise domestic production to meet its growing energy needs, Petroleum and Natural Gas Minister Jaipal Reddy has said.

He also said the government would come out with a more transparent and less intrusive policy regime to expedite oil and gas exploration.

"Shale gas is already acknowledged as a game changer in North America. We, in India, are pursuing a two-pronged approach with regard to shale gas - to acquire shale gas assets abroad and to explore and produce domestically," Reddy told a ministerial roundtable on fossil fuels at the World Energy Forum here.

He said India has formulated a draft policy on shale gas exploration and has invited comments from stakeholders. "We will soon come up with sustainable policy guidelines which are in conformity with the environment protection laws."

Reddy said with rising population, there would be a growth in energy demand.

In India, the demand would grow by 3.2 percent annually from now till 2030. Increased access to shale gas is expected to bring down prices and help cut the import bill and widening budget deficit.

Government-owned utilities like GAIL are looking at acquiring shale gas assets elsewhwhere in Asia. Out of an estimated 6,622 trillion cubic feett of global reserves, Asia is said to have around 1,785 trillion cubic feet of shale gas reserves.

The minister said although it is heartening to note the global efforts on new and renewable sources of energy, fossil fuel will continue to dominate the global energy supplies.

And that is why India is formulating a new oil and gas exploration policy.

"A simpler, more transparent and less intrusive regime for expediting the exploration of the sedimentary basins of the country is the need of the hour," Reddy said, adding that the new policy would be announced in the next few months.

"I urge all the oil majors to take advantage of the new policy regime and enhance their engagement and investment in India," he said.