'Infra, price regime, public acceptance challenge India's shale exploitation'

Lack of infrastructure, conducive fiscal and price regimes and public acceptance are the challenges for India to its replicating the US success in oil and gas.

India needs to develop its gas industry, install gas transportantion infrasructure and also gain public acceptance of shale exploration, Maria van der Hoeven, Executive Director of the International Energy Agency (IEA) told reporters on the sidelines of the 8th Asia Gas Partnership Summit here organised by industry chamber FICCI.

Pointing to the challenges that limit the potential of shale gas in India in the way it has revolutioniosed the energy scenario for the US, the IEA chief said the even the gas potential in the country could be much smaller.

Van der Hoeven said said public acceptance was crucial for shale exploitaiton as India is densely populated. In this regard, another difference between the US and India is that in the former the land where the mineral is found is owned by individual land owners, which acts as a big incentive for exploitation.

Besides as exploration and production require a lot of water, this is another aspect which India needs to solve, she added.

Van der Hoeven also said the current price for gas in India is low and not enough to make shale a viable preposition.