ONGC keen on foraying into unconventional gas sources

KOLKATA: ONGC today said it is keen on foraying into unconventional gas sources like shale gas and would bid for blocks once the government put in place a national policy.

"Why not? We are already present in conventional. Once the policy comes through we will exploit," ONGC Chairman and Managing Director Sudhir Vasudeva said when asked whether the energy major would bid for shale gas blocks despite infrastructure bottlenecks.

Speaking at a seminar on shale gas at the Bengal Chamber, he said lack of infrastructure was one of the several issues towards development of shale gas.

Vasudeva said that dual ownership right of a block would never work for extraction of different energy sources.

"Dual ownership will never work. Coal mining rights given to one company and CBM extraction to another, this has created lot of problems. But, this will be addressed in the draft policy on shale gas," he said.

He also said those already into conventional sources should have the right to tap unconventional sources.

Vasudeva also pointed at incentives to attract investment in infrastructure for such resources.

The ONGC chief said if shale gas extraction was at least 60 trillion cubic feet (tcf) when conventional was 40-45 tcf then it made sense.