On January 5, 2026, Oil and Natural Gas Corporation (ONGC) of India and Japanese shipping company Mitsui O.S.K. Lines (MOL) signed a joint venture agreement and capital contribution agreement.
This collaboration will integrate its regional operational strengths with MOL’s shipping expertise. The project is being implemented under the guidance of India’s Ministry of Petroleum and Natural Gas and the Directorate of Investment and Public Asset Management (DIPAM).
Under the agreement, ONGC and MOL will establish two joint ventures, each holding a 50% stake. Each joint venture will own and operate one Very Large Ethane Carrier (VLEC) to transport ethane from the United States to India.
The two new vessels will be built by a South Korean shipyard at a total cost of US$370 million, with each vessel costing US$185 million. They are expected to be operational by mid-2028 and will then supply feedstock to ONGC Petro Additions, a subsidiary of ONGC.
ONGC stated that the establishment of this joint venture and the ordering of new vessels mark the company’s strategic entry into the specialized shipping and energy logistics sector. By deploying a VLEC fleet, ONGC aims to strengthen value chain integration and capitalize on emerging opportunities in the global ethane transportation market.