India may auction six shale gas blocks in the first round expected later this year.
Of these, the two most prolific blocks with estimated reserves of 50 billion cubic metres, are in the Ranigunj coalfields of the Damodar basin in West Bengal.
The others are in Jharia, also in the Damodar basin, and in the Cauvery basin.
“We have handed over data package for six blocks to the Directorate-General of Hydrocarbons. The two blocks in Ranigunj are most prolific with a reserve potential of 50 billion cubic metres,” said A. K. Debnath, Chairman and Managing Director, Central Mine Planning & Design Institute (CMPDI).
He was talking to mediapersons on the sidelines of a seminar organised by the Mining, Geological and Metallurgical Institute of India in Kolkata on Saturday.
CMPDI was awarded a Rs 40-crore contract to prepare the data package for the shale assets.
The institute had prepared the data packages of the 33 coal bed methane (CBM) assets auctioned so far by the Centre.
According to Debnath, the country has lined up shale gas assets to be auctioned in the next four rounds.
However, he did not disclose the number of such assets.
Hard to extract
High in methane content, shale gas lies trapped in little bubbles inside shale rock formation, extensively found across different sedimentary basins, including coalfields. Though the energy potential of shale gas has been known, its extraction has taken off in the last decade with innovations in extraction techniques, such as hydraulic fracturing and horizontal drilling.
The rise in natural gas prices also gave shale gas a boost.
Though shale gas has changed the energy dynamics in the US, its exploration is yet to take off in Europe due to environmental concerns.
India has a draft shale gas policy.