Gail has finally entered the emerging shale gas space to explore the prospects of unconventional source of energy found abundantly in the US. India’s biggest gas transportation firm has bought a 20% stake in Carrizo’s Eagle Ford Shale acreage position at a cost of $95 million.
During mid-2010, even Reliance Industries had acquired stake in a JV with Atlas Energy for an investment of $1.7 billion to produce gas from Marcellus region and a buy out deal to the extent of 45% stake in shale gas assets of US-based Pioneer Natural Resources for $1.35 billion.
In fact, this development to mop-up shale gas assets comes at a time when even India is looking to launch its first auction round for the region’s untapped shale gas exploration reserves.
With increasing fuel costs in conventional energy resources, it does make sense for the Indian energy giants to scout for the growth through the inorganic route to tap the gas reserves from organic-rich sedimentary rocks, which is found below the surface between two rock formations where shale acts as a source for the natural gas.