GERMI, an undertaking of Gujarat State Petroleum Corporation (GSPC), would set up the laboratory with assistance from Oil Industry Development Board.
The move is significant as the first auction of shale gas blocks in India in scheduled next year. Shale gas is natural gas trapped within shale rock formations, and has increasingly become an important energy source in the US.
"GERMI is planning to set up a shale gas laboratory on its campus, which could be a helping arm to region like Cambay in Gujarat, having considerable shale formations," GERMI Director T Harinarayan said.
"We are in talks with the Oil Industry Development Board and also oil and gas regulator."
The proposed laboratory could play a vital role in exploring and analysing the regions with shale gas potentials in the country, with focus on Gujarat. It will have initial funding of up to Rs 8 crore.
At present, there are only one or two research institutes with focus on shale gas in the country, under ONGC Corp, industry sources said.
As per preliminary estimates of US Geological Survey, the potential of shale gas reserves in India is huge.
