Regulation, Infrastructure Key to Indian Shale Gas

Infrastructure, favourable regulatory regime, that while addressing environmental and social concerns, can promote exploration and production activities in the Indian shale gas industry, Economic Times said citing a report by Ernst and Young.

The report titled 'Shale gas - global experience and key learning' released at an industry event in New Delhi on Friday, says that India will need to have industry-friendly regulations, a favourable pricing regime, a developed onshore oilfield services (OFS) sector, an extensive gas- distribution network and market-driven gas pricing for the industry to flourish.

All countries, outside North America, including India, will need time to develop these capabilities,

Dilip Khanna, partner, oil & gas, Ernst & Young LLP said, "The recent pricing mechanism for natural gas, approved by the Cabinet Committee on Economic Affairs (CCEA), is expected to incentivize exploration and production (E&P) players and attract investments in the Indian upstream sector in general, and shale gas in particular."