On January 28, Japanese shipping giant Mitsui O.S.K. Lines (MOL) announced via its official website that it has established two joint ventures with India’s state-owned Oil and Natural Gas Corporation (ONGC). These joint ventures have signed long-term charter agreements with ONGC for two newly built Very Large Ethane Carriers (VLECs) during India Energy Week 2026, with a lease term of 15 years.
The state of the art 100,000 cubic meter VLECs will be equipped with dual fuel main engines capable of burning ethane as fuel. They are scheduled for construction at Samsung Heavy Industries. Delivery is slated for late 2028 or later, after which the vessels will be engaged in transporting liquefied ethane from the U.S. to India.
Since launching ethane transport business in 2016 as the world’s first VLEC operator, MOL has steadily built a strong track record in liquefied ethane transport and established itself as a leader in VLEC management and operations. Its experience with liquefied gas carriers, including VLECs, along with its operational expertise within the Indian Special Economic Zone, where these joint ventures are based, was recognized and led to the signing of this long term charter agreement.
MOL has positioned regional strategy as one of the key pillars of its group management plan “BLUE ACTION 2035,” identifying Asia as a region expected to deliver strong economic growth. In India in particular, where economic development has been remarkable, MOL has long been actively expanding its business presence. Through the expansion of its energy business, including this project, and the further strengthening of its partnership with ONGC, MOL group will continue to play a part in the transport and logistics infrastructure that supports rapidly growing-and expected to further expand-demand for energy, including natural gas, and contribute to stable supply.
MOL Group is advancing a transformation of its business portfolio by increasing the share of stable earnings businesses to secure profitability even during shipping downturns. Expanding our LNG and VLEC fleets-the world’s largest-as well as our long-term time charter contracts is part of this initiative.
Established in 1956, ONGC is one of India’s largest state-owned oil and gas companies, accounting for approximately 71% of India’s total production. Through its subsidiaries, ONGC operates a vertically integrated business across the entire value chain, from upstream (exploration and development) to downstream (refining and marketing), including oil refining, petrochemical production, and energy exploration and development activities in more than 15 countries worldwide. The company also plays a key role in driving the development of India’s petrochemical industry through initiatives such as its controlling stake in ONGC Petro Additions Limited (which supplies feedstock for the VLEC project).