While Reliance Industries Ltd (RIL) has bought interests in three shale gas assets in the United States, government-owned Oil and Natural Gas Corporation’s (ONGC) began drilling at its maiden shale gas well at Ichhapur in West Bengal’s Burdwan district last month.
Shale gas is natural gas, primarily methane, trapped in the earth’s most common sedimentary rock shale, which has low permeability. Shales have large organic matter, from which oil and gas can be extracted by destructive distillation.
ONGC's preliminary estimate for Damodar and Cambay basins indicate that shale gas resources here may be 35 and 90 trillion cubic feet, respectively. “If reports from Ichapur meet our expectation, India will possibly be on the road to produce more shale gas than the US. Moreover, states like West Bengal, Gujarat, Assam and Jharkhand have the capability to make this a reality,” said P K Bhowmick, head of the Keshava Deva Malaviya Institute of Petroleum Exploration in Dehradun. He was involved with ONGC’s research activities.
Six major shale areas in the US have proven reserves of about 240 tcf. Shale gas production in the US has led to a substantial reduction in natural gas demand, with International Energy Agency’s Annual Energy Outlook-2010 expecting that shale gas will contribute 34 per cent of total gas production in the US in 2035, up from 17 per cent at present.
Eastern hope
As the central government is gearing up for the first-ever auction of shale gas areas in 2011, experts consider West Bengal and Jharkhand will contribute substantially in fulfilling the country's shale dreams. “There are a number of shale formations in the 26 sedimentary basins of India, the cumulative thickness of which are comparable or more than best global shale plays. As shale gas exploration is a recent phenomenin in the Indian hydrocarbon sector, a comprehensive resource estimate of these assets is not yet available,” said an ONGC spokesperson. The findings of the project will be finalised after ONGC completes drilling till 1,200 metres in another 208 days. So far, the company has drilled up to 170 metres.
Regarding the prospects of eastern India, the ONGC spokesperson said West Bengal and Jharkhand comprised a small part of the total sedimentary fill available. However, given the fact that shale gas exploration has been initiated from this part of the country, the two states are expected to provide a major impetus to the effort once the pilot is successful. “As the government has recently initiated an exercise to evaluate, identify and offer shale gas acreages and may launch the Shale Gas Policy of India in 2011, much will depend on acreages and opportunities opened up in these states,” said the spokesperson.
Still nascent
Basic shale gas-specific data are also being generated in other basins like Cambay, KG and Cauvery. “It needs to be borne in mind that although India has large shale volumes in its sedimentary basins, we are at a nascent stage of shale gas exploration compared to the US,” the spokesperson added.
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A top official from the Directorate General of Hydrocarbons (DGH) said it was too early to comment. “The oil PSU had requested the petroleum ministry to carry out this research, with the shale gas auction expected to take place next year. We have to wait and watch for the final report,” said S C Sharma, a chief geologist at the DGH.
Adding: “The scene will soon change, as the US, too, is interested in India’s shale assets,” he added. ONGC plans to drill three more wells in Damodar Valley by March 2012.
Private sector giants such as Reliance Industries are also bullish on this gas source. RIL has completed three shale gas deals in the US since April. Reports suggest it is in talks with Chesapeake Energy for the Eagle Ford shale in South Texas. Oil India Ltd has also announced a plan to look for shale gas assets abroad.