India's Oil Ministry and the US Geological Survey made the discovery of large, highly enriched accumulations of natural gas hydrate - an icy form of the fuel - in the Bay of Bengal.
"This is the first discovery of its kind in the Indian Ocean that has the potential to be producible," the US agency said in a statement.
Natural gas hydrates are a naturally occurring, ice-like combination of natural gas and water found in oceans and polar regions. The amount of gas within the world's gas hydrate accumulations is estimated to greatly exceed the volume of all known conventional gas resources.
Gas hydrates are considered as vast resources of natural gas and are known to occur in marine sediments on continental shelf margins. Gas hydrate resources in India are estimated at 1,894 trillion cubic meters and these deposits occur in Western, Eastern and Andaman offshore areas.
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"Advances like the Bay of Bengal discovery will help unlock the global energy resource potential of gas hydrates as well as help define the technology needed to safely produce them," said Walter Guidroz, USGS Energy Resources Program coordinator.
The discovery follows an exploration of the region from March to July of last year.
"The scientists conducted ocean drilling, conventional sediment coring, pressure coring, downhole logging and analytical activities to assess the geologic occurrence, regional context and characteristics of gas hydrate deposits in the offshore of India," the statement said.
The US agency said although it is possible to produce natural gas from gas hydrates, there are significant technical challenges, depending on the location and type of formation.
The gas hydrate discovered are located in coarse-grained sand-rich depositional systems in the Krishna-Godavari Basin and is made up of a sand-rich, gas-hydrate-bearing fan and channel-levee gas hydrate prospects.
The next steps for research will involve production testing in these sand reservoirs to determine if natural gas production is practical and economic.
The discovery of several of the largest and most
concentrated gas hydrate accumulations yet found in the world will yield the geologic and engineering data needed to better understand the geologic controls on the occurrence of gas hydrate in nature and to assess the technologies needed to safely produce gas hydrates, he said.
In addition, USGS is working closely with the National Institute of Advanced Industrial Science and Technology, Japan on the analysis of pressure core samples collected from sand reservoirs with high gas hydrate concentrations.