GSPC Optimistic About Shale Opportunity in Cambay Basin

Gujarat State Petroleum Corporation is optimistic about producing shale gas from the Cambay basin after evaluating wells drilled in the region, but it is waiting for policy guidelines from the Central Government before it can invest more establish commercial viability.

GSPC's findings, along with ONGC's recent success is exploiting shale reserves, can potentially change India's energy landscape as the country is estimated to have an enormous shale reserves. In USA, shale gas already accounts for 17% of gas production and is expected to increase further.

GSPC has assessed five spots in Gujarat through conventional hydrocarbon exploration installations, officials said. "Our efforts through traditional vertical wells have showcased positive results. We can establish commercially viable presence of shale gas through further exploration. However, it can be possible only after the right policy in place as the wells to reach shale gas formations is highly capital intensive," said a top GSPC official who is associated with research and development activities on shale gas.

At certain spots, GSPC flared gas for as long as three days. "Heat flow, total organic carbon, Kerogen Type (II & III), thicknesses, depth of occurrence, extensive nature of shales found during initial tests are pointers towards shale gas to have the potential to be future gas source of the area," the official added.

GSPC is claiming to be the first Indian company that initiated assessment of shale gas in 2004. So far, it has tested its Tarapur, Ahmedabad, Ankleshwar, Sanand & Miroli blocks at 2,500 meter deep wells.

Located on West coast, Cambay basin is one of the oldest oil and gas producing areas in the country. According to various estimates, Damodar, Cambay, and Krishna Godavari and Cauvery basins have promising presence of shale formations. In January, ONGC said it found shale gas at country's first research and development well for the new energy source near Durgapur in West Bengal.

The GSPC official said, "We are trying to gather maximum information from the wells drilled for conventional hydrocarbon exploration plays so that we understand the potential with reliable data." GSPC has shared its findings and relevant data with ONGC that is exploring Cambay basin for five decades now.

Source: Economic Times