RIL arm acquires 21% stake in US-based Wavetech Helium for $12 million

A US subsidiary of Reliance Industries (RIL) has picked up a 21 per cent stake in US-based Wavetech Helium, Inc. (WHI), marking the oil-to-telecom conglomerate’s expansion in the helium segment which has a significantly lower carbon footprint.

 

Reliance Finance and Investments USA LLC (RFIUL), a step-down wholly owned subsidiary of Mukesh Ambani-run RIL, has entered into a stock purchase agreement with WHI and subscribed to 21 per cent stake for an aggregate consideration of $12 million, the company said in a stock exchange filing.

 

The acquisition, according to industry sources, is seen as RIL’s attempt to gain further understanding and explore potential in the helium-related segment. It is also in tune with the conglomerate’s long-term plan of achieving 2035 net zero carbon goal.

 

WHI is a US helium gas exploration and production company engaged in the acquisition, exploration, and development of properties to produce helium gas from underground reservoirs.

 

According to WHI’s website, the company controls helium gas reserves (including proven) and resources in E-SE Colorado/W Kansas and NW Montana -- two of the premier Helium fairways in the world.

 

It was incorporated in the US on July 2, 2021, and started its commercial operations this year.

 

RIL said the acquisition is part of the company’s strategy to expand its exploration and production business in low carbon solutions.

 

Helium is a new segment for the company, which is used in medical applications, scientific research, aerospace and aeronautics, electronics, fibre optics etc. Further, given the growth expected in AI & Data Centres, helium demand for semiconductor manufacturing is expected to increase, RIL said in its statement.

 

WHI’s website, highlighting helium’s business potential, noted that over the last 20 years, helium's demand growth and decline in supply has forced pricing to over $300+/million cubic feet (MCF), about one hundred times current US natural gas pricing.  

 

RIL’s last major investment in the US was through joint ventures entered into starting 2010 for interests in US Shale Gas assets, which the company exited in 2021.