India to Reform Shale Gas, CBM Sectors

Indian government is expected unveil key policy initiatives this month with a view to augmenting the country’s energy security, which will include ways to attract investors to shale gas and coal bed methane, Financial Express said in a report.

Speaking at the Express Group’s Idea Exchange programme on Wednesday, oil minister M Veerappa Moily said: “Both the shale gas policy and the revised CBM policy are ready. We will be taking the former to the Cabinet for clearance in the next 15 days and the latter, within a week.”

According to the oil ministry, India has a potential resource base in the range of 300-1,200 trillion cubic metres of shale gas and 92 trillion cubic feet for CBM.

The government has identified six basins — the Cambay, Assam-Arakan, Gondwana, KG onshore, Cauvery onshore and the Indo-Gangetic basins for carving out blocks to tap shale gas. The draft policy favours market-determined shale gas pricing, the financial daily said.

On the issue of the pricing of gas produced from coal bed methane (CBM) blocks by explorers such as Essar Oil and Reliance Industries the minister said, “We have taken an independent recommendation from Rangarajan on pricing of CBM gas. He has submitted a four-page note on the same. We will review and take decision accordingly.”