Natural Gas Discovery in Andaman Basin

Syllabus: GS1/ Geography

In News

• Oil India Ltd (OIL) has reported a significant natural gas discovery off the Andaman Islands, marking the first confirmed hydrocarbon occurrence in the region.

Hydrocarbon Potential of Andaman Basin

• Hydrocarbon Resource Assessment Study (HRAS): Estimates 371 MMTOE (Million Metric Tons of Oil Equivalent) in the AN Basin.
• It is part of the Bengal-Arakan sedimentary system.
• Lies at the tectonic boundary of the Indian and Burmese plates lead to the creation of stratigraphic traps conducive for hydrocarbon accumulation.
• Previous gas finds in North Sumatra (Indonesia) and Irrawaddy-Margui (Myanmar) suggest similar potential in Andaman.

Strategic Importance for India

• Energy Security: India currently imports 88% of crude oil and 50% of natural gas.
  • Major LNG import sources: Qatar, US, UAE.
  • Andaman discovery can help reduce import dependence.
• Economic & Industrial Impact: Supports India’s target of raising the share of natural gas to 15% in the primary energy basket by 2030 (currently ~6%).
  • Aligns with the vision of a Gas-Based Economy.
• Geostrategic Advantage: Andaman Basin sits in the energy-rich corridor from Myanmar to Indonesia.
  • Strengthens India’s position in the Indian Ocean Region (IOR).

Government Initiatives for Gas Exploration

• Hydrocarbon Exploration and Licensing Policy (HELP), 2016: Uniform license for exploration and production; introduced Open Acreage Licensing Policy (OALP).
• National Deep Water Exploration Mission: Focused on drilling a large number of deepwater wells to exploit offshore reserves.
• National Data Repository & National Seismic Program: Enhance data access for explorers.
• FDI Policy: 100% FDI allowed in the natural gas sector under automatic route.

Challenges Ahead

• Commercial viability yet to be confirmed (size of reserves, ease of extraction, production costs).
• Environmental sensitivity of the Andaman ecosystem.
• Ultra-deepwater drilling costs are very high; technology and infrastructure requirements are significant.
• Balancing energy exploration vs ecological conservation will be a key policy challenge.

Source: TH