Reliance to raise $1 billion to finance US shale gas ventures

India’s Reliance Industries Limited (RIL) is planning to raise more than $1 billion to fund its up-and-coming shale gas ventures in the US.

Reports suggest that RIL will direct a large portion of the funds generated from bond issue to meet the operational expenses of its shale gas projects in the US.

The company has inked joint ventures with three US based shale gas companies - Chevron (RIL- Chevron), Carrizo (RIL- Carrizo) and Pioneer (RIL-Pioneer) to extract gas from the three shale gas fields.

The potential of the two fields located in the Marcellus region, in the state of Virginia, is expected to be over 16 trillion cubic feet.

RIL has already started drilling on two beds and will start operations in the third one by May next year. Reliance Industries has so far invested close to $2.5 billion in its shale gas joint venture projects.