ONGC Enters Ethane Shipping through Joint Venture with MOL, Japan
5th January 2026
Oil and Natural Gas Corporation Limited (ONGC) has signed Joint Venture Agreements and Capital Contribution Agreements with M/s Mitsui O.S.K. Lines Ltd. (MOL), Japan, to subscribe equity shares in two joint venture entities, namely Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, registered in Gift City, Gandhinagar
The Maharatna shall subscribe to 200,000 equity shares, of Rs 100 per share, in each of the joint venture companies. Upon completion of the equity subscription, ONGC shall hold a 50% equity stake in each of the joint venture entities, with the remaining 50% held by M/s Mitsui O.S.K. Lines Ltd., Japan
Each joint venture company shall own and operate one Very Large Ethane Carrier (VLEC). The VLECs shall operate under the Indian flag and shall be deployed for the transportation of ethane from the United States of America to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary of ONGC
This strategic collaboration constitutes a significant milestone in strengthening long-term cooperation between ONGC and MOL. By leveraging MOL’s global maritime expertise alongside ONGC’s strong regional presence and operational capabilities, the partnership is expected to create substantial value across the energy transportation and value chain
The initiative also marks ONGC’s strategic entry into business diversification and growth. 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
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
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ONGC / PLL execute Ethane Unloading, Storage and Handling Services Term Sheet (3rd December 2025)