India Sees Shale Gas Policy Set by October
The Government of India plans to put a shale gas policy in place by October in order to facilitate auction of shale gas blocks by this year end.
The Central Mine Planning & Design Institute (CMPDIL), a subsidiary of Coal India, has been instructed by the Directorate General of Hydrocarbons (DGH) is to make complete assessment of shale gas potential in 11 basins across the country. A report is due by May, 2012.
The DGH has submitted a preliminary draft of shale gas policy to the Oil Ministry following consultations with ONGC, Oil India and Gail. DGH is also to examine provisions for production-sharing contract with respect to conventional oil, gas and coal-bed methane to prevent legal complications.
ONGC, which has undertaken studies for assessment of shale gas potential in Raniganj in West Bengal and North Karanpura in Jharkhand, has partnered with services giant Schlumberger for exploitation of shale gas reserves. Samples have been tested at Schlumberger laboratory in the United States and results are expected by April.
The national shale gas programme would be similar to the CBM exploration policy. Blocks would be awarded by the cabinet committee of economic affairs (CCEA) based on recommendations by the empowered committee of secretaries that could include top bureaucrats from oil, finance, law and environment ministries.