India Discovers Natural Gas in Andaman Sea, Signaling a Potential Energy Breakthrough

India has embarked on a new chapter in its energy exploration journey with the discovery of natural gas in the Andaman Sea, confirmed by Union Petroleum Minister Hardeep Singh Puri. The find is expected to significantly bolster the country’s energy resources.

Last week, Oil India Limited identified natural gas in the Sree Vijaypur-2 exploratory well, located approximately 17 kilometers off the Andaman coast at a water depth of 295 meters and a drilling depth of 2,650 meters. Initial production tests confirmed the presence of natural gas between 2,212 and 2,250 meters. Gas samples sent for laboratory analysis to Kakkinada contained 87% methane—a highly efficient and clean-burning fuel.

The discovery validates India’s long-standing belief that the Andaman region, like the geologically similar offshore areas of Myanmar and Indonesia, is rich in hydrocarbon resources. Minister Puri indicated that the area could potentially host substantial oil and gas reserves.

This milestone represents a key achievement in the National Seabed Exploration Offshore (NSEO) initiative, launched by Prime Minister Narendra Modi in August, aimed at accelerating India’s path toward energy self-reliance. The implications of this discovery are substantial:

1. Energy Security: Currently, India imports nearly 44% of its natural gas as liquefied natural gas (LNG). Domestic discoveries like this could reduce import dependence, enhance energy security, and lower costs.
   
   
2. Environmental Goals: Methane is a much cleaner fuel compared to coal and oil. Its utilization can help India reduce greenhouse gas emissions, curb air pollution, and advance green energy targets.
   
   
3. Global Collaboration: The discovery opens avenues for collaboration with global offshore exploration leaders such as Petrobras, BP India, Shell, and ExxonMobil.
   
   
4. Economic and Employment Opportunities: Development of methane-related infrastructure, including gas separation, transportation, and distribution, is expected to generate new employment opportunities and stimulate regional economic growth.

Following the announcement, shares of Oil India Limited rose by more than 3%, reflecting investor optimism. While it may take some time to commercially exploit and fully produce the gas, the discovery positions India to move closer to gas self-sufficiency and creates potential export opportunities in the future.