Natural Gas Discovery in Andaman Basin

Discovery Details

Natural Gas Discovery in Andaman Basin: The Ministry of Petroleum and Natural Gas announced the discovery of natural gas in the Sri Vijayapuram 2 well, located 17 km from the east coast of the Andaman Islands. This marks a significant milestone in India’s energy exploration efforts. The find could boost domestic production and reduce dependency on imports.

Static GK fact: The Andaman-Nicobar Islands are a group of 572 islands, located at the junction of the Bengal and Andaman Seas.

Hydrocarbon Potential

India’s Hydrocarbon Resource Assessment Study (HRAS) estimates 371 million Metric Tons of Oil Equivalent (MMTOE) in the Andaman-Nicobar (AN) Basin. Geologically, the basin lies at the intersection of the Andaman and Nicobar Basins, part of the Bengal-Arakan sedimentary system. The tectonic activity at the boundary of the Indian and Burmese plates has created stratigraphic traps ideal for hydrocarbon accumulation.

Static GK Tip: The Bengal-Arakan sedimentary system extends into Myanmar and Bangladesh, influencing regional hydrocarbon prospects.

Regional Context

Adjacent basins along North Sumatra (Indonesia) and Irrawaddy-Margui (Myanmar) have also witnessed significant gas discoveries. These regional developments indicate high potential for future exploration in the AN Basin. India’s discovery aligns with these patterns, reinforcing the strategic importance of this region.

Strategic Importance

India aims to establish a Gas Based Economy by 2030 and increase the share of natural gas in its primary energy basket to 15%. Currently, domestic production meets only 50% of demand, with the remainder fulfilled through imports from Qatar, the US, and UAE. Increasing domestic gas production is critical to energy security and reducing import dependence.

Static GK fact: India is the fourth largest consumer of natural gas globally, after the US, Russia, and China.

Exploration Initiatives

Several initiatives support natural gas exploration in India:

• Hydrocarbon Exploration and Licensing Policy (HELP) 2016: Introduced a uniform licensing framework and Open Acreage Licensing Policy (OALP) for all hydrocarbon exploration and production.
• National Deep Water Exploration Mission: Plans large-scale deepwater exploration to uncover new reserves.
• Other initiatives include the National Data Repository, National Seismic Program, and 100% FDI in the natural gas sector.

Static GK Tip: India allows 100% FDI in natural gas exploration to attract global investment and advanced technology.

Economic and Energy Outlook

The discovery is expected to enhance India’s self-reliance in energy and support its transition toward cleaner fuels. Expanding natural gas production will reduce reliance on LNG imports, stabilize energy prices, and contribute to industrial growth.

Static GK fact: Liquified Natural Gas (LNG) is transported at -162°C to maintain it in liquid form, reducing its volume for easier shipping.

Static Usthadian Current Affairs Table

Natural Gas Discovery in Andaman Basin: