ONGC JV Companies Sign Shipbuilding Contracts with Samsung Heavy for Two Indian-Flag Very Large Ethane Carriers
By venturing into specialised marine energy logistics, ONGC is expanding India’s presence in a niche, high-value segment of global shipping
Oil and Natural Gas Corporation Limited (ONGC), through its joint venture companies with Mitsui O.S.K. Lines Limited (MOL), Japan, has signed Ship Building Contracts (SBCs) with Samsung Heavy Industries, South Korea, for the construction of two state-of-the-art Very Large Ethane Carriers (VLECs). The contracts were finalised on January 27, 2026, marking a significant milestone in strengthening India’s energy logistics infrastructure through trilateral cooperation among India, Japan and South Korea.
The agreements were signed in the presence of Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, Secretary, Ministry of Petroleum and Natural Gas Dr Neeraj Mittal, IAS, and ONGC Chairman & CEO Arun Kumar Singh. The SBCs were executed by S.K. Dwivedi, Chief – BD & JV, ONGC; Hisashi Umemura, Senior Managing Executive Officer, MOL; and Sung-an Choi, CEO, Samsung Heavy Industries.
The initiative represents a strategic move to reinforce India’s energy ecosystem by securing specialised marine logistics for critical feedstock, enhancing supply-chain resilience and enabling long-term industrial self-reliance. By creating dedicated Indian-flag ethane shipping capacity, ONGC aims to safeguard downstream operations dependent on stable and predictable ethane supplies, particularly in the petrochemical sector.
ONGC and MOL have established two joint venture companies—Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd.—in GIFT City, Gujarat, with each entity owning and operating one VLEC. These vessels will support the transportation of approximately 600 KTPA of ethane for ONGC subsidiary ONGC Petro additions Limited (OPaL).
Each VLEC will have a cargo capacity of about one lakh cubic metres and will operate under the Indian flag. In addition, ONGC has entered into long-term Time Charter Party agreements with the two JV companies to ship ethane from the United States to India, creating a dedicated and reliable corridor for energy feedstock movement. The vessels are scheduled for delivery in FY 2028–29.
By venturing into specialised marine energy logistics, ONGC is expanding India’s presence in a niche, high-value segment of global shipping. The project is expected to build institutional expertise, operational preparedness and strategic capability, strengthening the broader national energy ecosystem.
The initiative aligns with the Prime Minister’s Maritime Amrit Kaal Vision 2047 and India’s Atmanirbhar Bharat goals, reinforcing the country’s push toward energy self-reliance and long-term economic resilience.
The project 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.
