ONGC enters ethane shipping through a joint venture with MOL, Japan
ONGC will subscribe to 200,000 equity shares of ₹100 each in both joint ventures, resulting in a 50 per cent stake in each company.
Oil and Natural Gas Corporation (ONGC) has entered the ethane shipping segment through joint ventures with Japan-based Mitsui O.S.K. Lines (MOL), marking its first direct participation in specialised gas transportation logistics.
ONGC signed the joint venture and capital contribution agreements with MOL to invest in two shipping entities registered in Gift City, Gandhinagar. The entities are Bharat Ethane One IFSC and Bharat Ethane Two IFSC.
Under the agreements, ONGC will subscribe to 200,000 equity shares of ₹100 each in both joint ventures, resulting in a 50 per cent stake in each company. The remaining equity will be held by MOL.
Each joint venture will own and operate one Very Large Ethane Carrier (VLEC). The VLECs will operate under the Indian flag and will be deployed to transport ethane from the United States to India to meet the feedstock requirements of ONGC Petro Additions Limited, a subsidiary of ONGC.
The deployment of dedicated VLECs establishes a direct logistics link between ethane supply points in the United States and Indian petrochemical demand. The structure places vessel ownership and operations within Indian-registered entities while drawing on MOL’s shipping experience.
The move places ONGC within the energy shipping value chain, extending its role into maritime transport that supports its downstream petrochemical operations. The joint ventures are intended to provide stable ethane flows to OPaL through controlled shipping capacity.
The initiative aligns with the Maritime Amrit Kaal Vision 2047 and has been undertaken with guidance from the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management under the Ministry of Finance.
