Oil and Natural Gas Corporation Ltd (ONGC) has entered into joint venture and capital contribution agreements with Japan-based Mitsui O.S.K. Lines Ltd (MOL) to set up two special purpose entities for ethane transportation, marking a significant step in the company’s diversification strategy.
Under the agreements, ONGC will invest in Bharat Ethane One IFSC Pvt Ltd and Bharat Ethane Two IFSC Pvt Ltd, both incorporated at GIFT City, Gandhinagar. The Maharatna PSU will subscribe to 2,00,000 equity shares of Rs 100 each in both entities, resulting in a 50 per cent equity holding in each joint venture. The remaining 50 per cent stake will be held by MOL.
Each joint venture company will own and operate one Very Large Ethane Carrier (VLEC). The vessels will sail 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 Ltd (OPaL), a subsidiary of ONGC.
The collaboration brings together MOL’s global experience in specialised shipping with ONGC’s strong domestic footprint and operational capabilities. The partnership is expected to enhance efficiency across the ethane supply chain while creating long-term value in energy logistics and transportation.
With this initiative, ONGC makes a strategic foray into specialised shipping, strengthening backward integration and expanding its presence across the energy value chain. The deployment of VLECs for ethane transportation is also aimed at tapping emerging opportunities in energy logistics and supporting the company’s long-term growth objectives.
The venture aligns with the Government of India’s Maritime Amrit Kaal Vision 2047, which focuses on self-reliance, development of globally competitive maritime infrastructure, and sustainable economic growth. The initiative has been undertaken with guidance and support from the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.