As part of its plan to boost natural gas production, the Oil Industry Development Board (OIDB) has earmarked Rs 200 crore under the natural gas hydrate programme.
The amount is to be disbursed in phases and will be used towards collection and interpretation of seismic data and development of new technologies.
OIDB secretary Ardhendu Sen, told Business Standard that about Rs 10 crore has already been sanctioned by the government for phase I. The tentative plan includes survey of deep sea beyond a depth of 600 metres for exploring gas fields. Phase II will involve exploratory drilling of two or more wells.
OIDB with an annual budget of Rs 1,500 crore for 1997-98, plans to fund the entire programme, Sen indicated.
The natural gas hydrate programme will induct new technologies for which it has called upon experts from ONGC, GAIL and IIT. New technologies are needed to augment gas production from reservoirs ,says Sen.
Gas production amounts to only 8 per cent of the total hydrocarbon in India against 23 per cent in USA and UK. Indias gas reserves are expected to be in the region of 1,900- 2,000 trillion cubic metres of gas.
The ministry of petroleum and natural gas is in the process of evolving a regulatory framework as large investments from private sector, especially overseas gas majors, are expected. Sen pointed out that the ministry in consultation with industry bigwigs is preparing a Gas Act which is likely to be placed before the cabinet by the year-end.
Sen was addressing the 4th Annual India Oil & Gas Review Symposium organised by Oil Asia Journal here yesterday.
Indias domestic production is likely to touch 31 billion cubic metres (bcm) by 2000-01 from 22 bcm in 1996-97.
About 44 per cent of natural gas is supplied to fertiliser units, 40 per cent to power generating companies, 5 per cent to sponge iron units and 11 per cent for other industrial purposes including the city gas distribution scheme.
Of the 31 bcm of gas, the marketable sales are expected to be 25 bcm.
Although the government is banking on private sector to augment gas production, the end use pattern is expected to more or less remain the same with priority given to fertiliser and power units.
