India-US may ink shale gas tech pact during Obama's visit

NEW DELHI: India plans to sign an agreement with the US for cooperation in exploiting unconventional shale gas reserves during President Barack Obama's visit next month.

"There have been some discussions... we hope to sign a memorandum of understanding (MoU) during US President's visit," Oil Minister Murli Deora said at the Economic Editors Conference in New Delhi.

India does not have technology to exploit shale gas, an unconventional gas trapped in sedimentary rocks and the US is a pioneer in the field.

Oil Secretary S Sundareshan said New Delhi was looking at cooperation with the US in ascertaining shale gas resources base in the country and formulating a policy framework for beginning shale gas exploration.

The agreement is expected to be signed with the US Geological Survey for knowledge-sharing in the area of shale gas.

India is looking at launching first round of auction of shale gas bearing areas by end of 2011.

India intends to see a boom in shale-gas exploration that has fuelled more than $39 billion acquisitions in the US by companies, including Reliance Industries .

Obama is visiting Mumbai and New Delhi during November 6-8 to deepen ties with the world's second-fastest-growing major economy after China.

Shale gas is trapped in geological shale formations and was previously very difficult to extract. But US firms have developed technologies to crack these tight rock formations, making output of the gas economical.

Energy-hungry India, which is 75 per cent dependent on imported oil, hopes to replicate the success seen in the US with its own shale gas reserves.

Shale gas deposits in India are expected in basins in western, central and northeastern parts of the country. Primarily, focus is on three basins -- Cambay (in Gujarat), Assam-Arakan (in the North-East) and Gondwana (in central India).