ONGC Enters Ethane Shipping with Japan’s MOL, Forms JV to Operate VLECs Under Indian Flag

Oil and Natural Gas Corporation Limited (ONGC) has taken a major step towards business diversification and strengthening its energy logistics capabilities by entering the specialised ethane shipping segment through a joint venture with Japan’s leading shipping company Mitsui O.S.K. Lines Ltd. (MOL).

ONGC on Monday signed Joint Venture Agreements and Capital Contribution Agreements with MOL to acquire equity in two newly incorporated entities—Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited—registered at GIFT City, Gandhinagar.

Under the agreements, the Maharatna PSU will subscribe to 2,00,000 equity shares of ₹100 each in both joint venture companies. Upon completion of the equity subscription, ONGC will hold a 50 per cent stake in each entity, while the remaining 50 per cent equity will be held by Mitsui O.S.K. Lines Ltd., Japan.

Each of the joint venture companies will own and operate one Very Large Ethane Carrier (VLEC). The vessels will sail under the Indian flag and will be deployed for transporting ethane from the United States of America to India to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary of ONGC.

The strategic partnership marks a significant milestone in the long-standing cooperation between ONGC and MOL. By combining MOL’s extensive global maritime expertise with ONGC’s strong domestic presence and operational strengths, the joint venture is expected to enhance efficiency, reliability, and value creation across the energy transportation and downstream value chain.

The initiative also represents ONGC’s strategic entry into specialised shipping and energy logistics, aligning with its broader diversification and growth objectives. Through the operation of VLECs, ONGC aims to capitalise on emerging opportunities in global energy transportation, strengthen backward integration for its petrochemical operations, and establish a robust operational footprint in niche shipping segments.

The venture is in line with the Hon’ble Prime Minister’s Maritime Amrit Kaal Vision 2047, which focuses on self-reliance, development of world-class maritime infrastructure, and long-term economic resilience. The initiative has been undertaken with the guidance and support of the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.

With this move, ONGC not only reinforces the security of critical feedstock supplies for OPaL but also positions itself as an emerging player in India’s evolving maritime and energy logistics ecosystem.