Mukesh Ambani to invest Rs. 24,000 cr more in US
Mukesh Ambani’s RIL will invest another Rs. 24,000 crore over the next three years to acquire shale gas assets in the US. It is also considering setting up a gas-based power along with a gas-based petrochemicals plant in the US. Anupama Airy reports. Greener pasturesbusiness Updated: Aug 02, 2013 07:13 IST
Mukesh Ambani’s Reliance Industries Ltd (RIL) will invest another $4 billion (Rs. 24,000 crore) over the next three years to acquire shale gas assets in the US, taking the company’s total investments in that country's shale gas sector to $10 billion (Rs. 60,000 crore at current exchange rates).
In addition, RIL is also considering setting up a gas-based power or fertiliser unit along with a gas-based petrochemicals plant in the US, sources close to the company told HT.
RIL, the sources added, is currently working out a strategy on how to optimise the utilisation of its share of gas from various shale gas assets it has invested in.
“The gas-based plant could be a power, fertiliser or a petrochemicals unit... it could be a green field or a brown field investment and the company is weighing all options,” the source said, adding RIL may also buy stakes in the liquefaction facilities being set up in the US to sell this gas as LNG.
Ambani said at RIL’s recent annual general meeting that shale gas will be the company's prime growth focus in the near future.
“Production from shale gas will be in excess of one third of our aggregate production this year,” Ambani told the AGM, adding that the company’s revenues from US shale gas have doubled.
RIL's share of natural gas output from its US shale gas operations has reached over 11 million units per day, almost equal to its share of around 14 million units per day from the Krishna Godavari (KG D6 fields) basin.
Analysts said production from RIL’s shale gas assets may double soon, thereby exceeding the production of KG-D6 gas fields.
RIL, through its US subsidiary Reliance Holdings USA, has so far invested $6 billion (Rs. 36,000 crore) in a host of shale gas assets in the US with Chevron Corp, Pioneer Natural Resources, Carrizo Oil and Gas Inc.