Shale Gas Policy, Gas Price on India's Agenda

India’s Petroleum Minister M Verappa Moily has said that the government is expected to come up with a final draft on the shale gas exploration policy within 15 days. The minister also said that a note on recommendations on a revision in domestic natural gas prices will also be sent to a group of minister within a fortnight.

Business Standard newspaper has reported that first round of shale gas block auctions would be conducted by the end of this year. As per the new policy shale gas rights are likely to be allotted according to the revenue share offered to the government.

Initial studies indicate presence of shale gas in Cambay, Gujarat, Assam-Arakan in the Northeast, Gondawana in central India, Krishna Godavari in Andhra Pradesh, Cauvery onshore and the Indo-Gangetic basins.

On the gas price issue, the newspaper said that committee had suggested an increase in gas prices, based on a formula of average gas prices in other markets and the netback of imported liquefied natural gas prices.