New Delhi: State-owned Oil and Natural Gas Corporation Ltd (ONGC) on Monday announced its entry into ethane shipping after signing joint venture agreements with Japan’s Mitsui O.S.K. Lines Ltd (MOL) to set up two shipping entities in GIFT City, Gandhinagar.
Under the agreement, ONGC will acquire a 50% equity stake in Bharat Ethane One IFSC Pvt Ltd and Bharat Ethane Two IFSC Pvt Ltd, with the remaining 50% held by MOL. The Maharatna will subscribe to 2,00,000 equity shares of ₹100 each in both joint ventures.
Each of the JV companies will own and operate one Very Large Ethane Carrier (VLEC), which will sail under the Indian flag and be deployed to transport ethane from the United States to meet the feedstock requirements of ONGC Petro additions Ltd (OPaL), a subsidiary of ONGC.
ONGC said the partnership leverages MOL’s global maritime expertise and its own operational capabilities, and marks a key step in diversifying its business into specialised energy logistics. The move is expected to strengthen integration across ONGC’s value chain and create new growth opportunities in shipping.
The initiative aligns with the government’s Maritime Amrit Kaal Vision 2047, aimed at boosting self-reliance and developing world-class maritime infrastructure, and has been undertaken with support from the petroleum ministry and the Department of Investment and Public Asset Management.