India Energy Week in Delhi recently concluded with a press conference where a journalist asked Union Minister for Petroleum and Natural Gas Hardeep Puri if India had given up its gas hydrates programme. Gas hydrates, a significant source of natural gas within India’s reach, was not mentioned at the event, which is touted as the world’s second biggest energy event. Minister Puri passed the question to Petroleum Secretary Pankaj Jain, who explained that under the new petroleum licensing policy, it was up to the winning concessionaire to extract any hydrocarbons from the designated area, including gas hydrates.
Gas hydrates are essentially natural gas (methane) mixed with water and frozen. They fall under the category of unconventional hydrocarbons, along with coal bed methane. India has vast quantities of gas hydrates located around the Andaman Islands and in the Krishna-Godavari (KG) offshore region. The estimated gas hydrate potential in India is 1,894 trillion cubic meters, which is significantly higher than the coal bed methane potential of 1.3 trillion cubic meters.
Despite the immense potential of gas hydrates, India has not been able to extract them even after three decades. There have been two drilling expeditions, one in 2006 and another in 2015, which confirmed the presence of gas hydrates in the KG and Mahanadi basins and near the Andaman Islands. However, progress has been slow, with no significant developments since the drilling expeditions.
The government recognizes the importance of gas hydrates, with a 2016 note from the Oil Industry Development Board stating that the National Gas Hydrates Programme is of national importance. However, the reasons for India’s failure to tap into its gas hydrate reserves may be more economic rather than technical. The cost of extracting gas from hydrates is expected to be higher, and without a premium in the market, there is little incentive for oil companies to pursue this option.
Other countries like the US, Canada, and Japan, which also have gas hydrate reserves, have not prioritized their extraction due to different economic considerations. India’s ambition to become a world leader in energy may require a long-term vision and government intervention to effectively tap into its abundant gas hydrate reserves and reduce dependency on imported natural gas.
