New Delhi: Maharatna PSU Oil and Natural Gas Corporation Ltd (ONGC) has forayed into the ethane shipping segment through a 50:50 joint venture with Japan’s Mitsui O.S.K. Lines Ltd (MOL), tightening control over feedstock logistics for its petrochemicals business. The agreements were signed on 5 January 2026 in New Delhi and cover both joint venture formation and capital contribution arrangements.
Under the pact, ONGC will subscribe to 2,00,000 equity shares of ₹100 each in two Gift City-based entities, Bharat Ethane One IFSC Pvt Ltd and Bharat Ethane Two IFSC Pvt Ltd. Post subscription, ONGC will hold 50 percent equity in each company, with the balance 50 percent owned by MOL.
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Each joint venture company will own and operate one Very Large Ethane Carrier (VLEC) that will sail under the Indian flag. The VLECs will transport ethane from the United States to meet the feedstock requirements of ONGC Petro additions Ltd (OPaL), the company’s petrochemicals subsidiary.
ONGC described the tie-up as a strategic collaboration that deepens its long-term partnership with MOL and creates value across the energy transportation chain. By combining MOL’s global maritime expertise with ONGC’s regional footprint and operational capabilities, the partners aim to build a robust presence in specialised ethane shipping.
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The move also marks ONGC’s push into business diversification and integration of logistics with its core upstream and petrochemicals operations. Through dedicated VLECs, the company is looking to capitalise on emerging opportunities in energy logistics while de-risking supply for its downstream petrochemicals portfolio.
According to ONGC, the venture is aligned with the government’s Maritime Amrit Kaal Vision 2047, which stresses self-reliance, world-class maritime infrastructure and long-term economic resilience. The initiative has been undertaken with guidance and support from the Ministry of Petroleum and Natural Gas and DIPAM under the Ministry of Finance.
