Gas hydrates to boost India's gas resource

As part of its plan to boost India's natural gas resources, the Oil Industry Development Board (OIDB) of India has earmarked 2 billion rupees ($56 million) for a gas hydrates exploitation program.

The amount is to be disbursed in phases and will be used for collection and interpretation of seismic data and development of new technologies.

"An amount of 100 million rupees has already been sanctioned by the government for Phase I," said OIDB Sec. Ardhendu Sen. "The tentative plan includes a deepwater survey beyond a depth of 600 m for exploring gas hydrate resources. Phase II will involve exploratory drilling of two or more wells."

OIDB didn't disclose where the offshore gas hydrates exploration program would focus.

OIDB, with an annual budget of 15 billion rupees ($420 million) for 1997-98, plans to fund the entire program, Sen indicated.

What's involved

The natural gas hydrates program will incorporate two technologies for which it has called upon specialists from state-owned Oil & Natural Gas Commission, Gas Authority of India Limited, and the Indian Institutes of Technology.

"New technologies are needed to augment gas production from reservoirs," Sen said.

Gas production amounts to only 8% of the total hydrocarbons produced in India, compared with 23% in the U.S. and U.K. India's potential gas resource is estimated at 66.5-70 tcf.

Gas industry framework

The Ministry of Petroleum and Natural Gas is in the process of developing a regulatory framework for the country's gas industry, because large investments from the private sector, especially overseas gas majors, are expected.

Sen pointed out that the ministry, in consultation with industry officials, is preparing national gas legislation, which is likely to be placed before the cabinet by yearend.

India's domestic natural gas production is likely to increase to 31 billion cu m by 2000-01, from 22 billion cu m 1996-97.

About 44% of India's natural gas is supplied to fertilizer plants; 40% to electric power generating companies; 5% to sponge iron units; and 11% for other industrial purposes, including the city gas distribution scheme in selected metropolitan centers.

Of the 31 billion cu m of projected gas production at the turn of the century, marketable sales gas is expected to be 25 billion cu m.