Oil and Natural Gas Corporation (ONGC) has signed a strategic heads of agreement with Japan’s Mitsui O.S.K. Lines (MOL) to collaborate on building, owning, and operating two Very Large Ethane Carriers (VLECs).
ONGC will hold at least 26% of the joint venture’s shares and may choose to increase its stake to 50%, while the remaining shares will be held by MOL, the world’s second-largest fleet owner.
The VLECs will ship imported ethane — a critical feedstock for petrochemical production — from international markets to ONGC Petro Additions Limited (OPaL), ONGC’s downstream subsidiary based in Dahej, Gujarat. Ethane serves as a key input for producing ethylene, a fundamental material in plastics, synthetic fibres, and chemicals, making the initiative pivotal for domestic manufacturing and industrial growth.
“This global partnership marks a bold step in ONGC’s downstream expansion, combining innovation, scale, and energy security like never before,” ONGC stated. “This isn’t just a collaboration; it’s ONGC charting the course for the next era of energy.”
The “mega vessels” will ensure a steady, self-reliant supply of feedstock for OPaL’s advanced petrochemical operations. While specific details such as construction timelines, vessel specifications, or investment figures remain undisclosed, the agreement highlights ONGC’s strategy to vertically integrate its operations and reduce dependency on intermittent global supply chains.
MOL, a leading player in global maritime transport, brings decades of expertise in operating specialized energy carriers, complementing ONGC’s position as India’s largest oil and gas producer. The collaboration aligns with India’s broader goals to enhance energy security and boost domestic manufacturing under initiatives like “Make in India.”