ONGC and Mitsui's Bold Venture into Ethane Shipping

Oil and Natural Gas Corporation has partnered with Japan's Mitsui OSK Lines to own and operate very large ethane carriers, marking its entry into specialized ethane shipping. The move secures ethane supplies for ONGC Petro additions Ltd, with ethane imports starting mid-2028.

State-owned Oil and Natural Gas Corporation (ONGC) is set to take a significant step into the specialized shipping sector. The company has partnered with Japan's Mitsui OSK Lines (MOL) to own and operate very large ethane carriers (VLECs), taking a 50% stake in two joint ventures.

The VLECs, which will sail under the Indian flag, aim to transport ethane from the United States to ONGC Petro additions Ltd (OPaL), ONGC's petrochemical subsidiary. This venture represents a key strategic diversification for ONGC into energy logistics.

Planned to be operational by mid-2028, these ships are intended to secure the petrochemical feedstock for OPaL's Dahej facility. The estimated USD 370 million investment underscores ONGC's commitment to securing long-term supplies and expanding its reach beyond traditional upstream operations.

(With inputs from agencies.)