Mukesh Ambani-led Reliance Industries Limited (RIL) is all set to invest $1.7 billion in a US-based project to extract gas from a sedimentary rock Shale. RIL has paired up with Atlas Energy Inc. for the project.

As per a statement from Atlas, the project, spread over Marcellus, certain parts of Pensylvania, New York and West Virginia, was potential enough to meet gas demand in US for nearly a decade.

The company further added that RIL would invest in the project for a 40 per cent undivided interest. The project stands on 300,000 acres of leasehold undeveloped land hold by Atlas.

As part of its investment RIL would infuse $340 million cash into the project and another $1.36 billion as drilling carry. RIL's drilling carry investments involves drilling of its own 40 per cent share and drilling of the other partner's portion till $1.36 billion gets exhausted.

Shale gas, which the companies are trying to extract under the project, is a category of natural gas found in organic rich rocks. In general experts consider it as an unconventional source of natural gas as many a times it's found attached to or absorbed onto organic matter.