The draft policy for shale gas exploration, now in circulation, is under discussion by various stakeholders and is likely to be ready within a year, according to Union Minister of State for Petroleum and Natural Gas Panabaka Lakshmi.
Due to the shortage of natural gas in the country and a projected increase in demand, the Government is keen on shale gas exploration, which has been a big success in the US. Shale gas is seen as an important new source of energy, she said.
Addressing a CII conference on Natural Gas here today, the Union Minister said the national endeavour is to bridge the growing demand-supply gap for petroleum products by intensifying exploratory efforts for oil and gas in Indian sedimentary basins and abroad.
This would be supported by alternative sources of energy including coal bed methane, shale gas, gas hydrates, ethanol and biodiesel. India already produces coal bed methane on a commercial scale. The country is the fourth largest consumer of primary energy and accounts for nearly 4.6 per cent of the world’s energy consumption after China, the US and the Russian Federation.
During 2011-12, the consumption of petroleum products was about 148 million tonnes, showing an import dependence of 75 per cent.
The natural gas sector in the country is growing and constitutes 9.8 per cent of primary energy consumption, which is likely to increase to 20 per cent by 2025 in line with the Indian hydrocarbon vision. About 65 per cent of natural gas consumption is in the power and fertiliser sectors.
The CII sought Government support in developing the petrochemical investment region as it is seen to have a cascading impact on the economy, providing huge employment in the State.