ONGC joins hands with Japan’s Mitsui OSK Lines to enter ethane shipping operations

Oil and Natural Gas Corporation announced on Monday that it has entered into a strategic partnership with Japanese shipping major Mitsui OSK Lines to strengthen its presence in specialised energy transportation.

According to a stock exchange filing, the two companies signed joint venture and capital contribution agreements.

Under the agreement, ONGC will invest in two newly formed joint venture companies — Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited — both registered in GIFT City, Gandhinagar.


The project has been undertaken with the backing of the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance, the company said.

The Maharatna PSU will acquire 2,00,000 equity shares of Rs 100 each in both entities, securing a 50% ownership in each company. The remaining half stake will be held by MOL.

Each of the joint venture companies will own and operate a Very Large Ethane Carrier (VLEC), with the vessels to be registered under the Indian flag. The specialised carriers will transport ethane from the United States to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary of the state-run energy major.

"Through the deployment of VLECs for ethane transportation, ONGC aims to capitalise on emerging opportunities in energy logistics, strengthen integration across its value chain, and establish a robust operational presence in specialised shipping,” said ONGC.

Moreover, the initiative is also aligned with the Centre's Maritime Amrit Kaal Vision 2047, which seeks to enhance national self-reliance, develop world-class maritime infrastructure and support long-term economic resilience.