ONGC JV Companies` shipbuilding contracts for two VLECs with Samsung Heavy Industries
27th January 2026
Oil and Natural Gas Corporation Limited (ONGC), through its joint venture companies with M/s Mitsui O.S.K. Lines Limited (MOL), Japan, has entered into Ship Building Contracts (SBCs) with M/s Samsung Heavy Industries, South Korea, for the construction of two state-of-the-art Indian-flag Very Large Ethane Carriers (VLECs)
The fast-tracked conclusion of these SBCs reflects strong trilateral cooperation and industrial partnership among India, Japan and South Korea
This initiative is a strategic step toward strengthening India ’s energy ecosystem by securing specialized marine logistics for critical feedstock, improving supply-chain resilience, and enabling long-term industrial self-reliance
By creating dedicated, Indian-flag ethane shipping capacity, ONGC is reinforcing national resilience against external disruptions, supporting continuity of operations across petrochemicals and downstream value chains that rely on stable, predictable input supplies
ONGC and MOL Japan have set up two joint venture companies, Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd., in GIFT City, Gujarat, with each company owning and operating one VLEC. These vessels will support the transportation of about 600 KTPA of ethane for OPaL, a subsidiary of ONGC
The VLECs will be Indian-flag, with a cargo capacity of one lakh cubic meters each. ONGC has also signed long-term Time Charter Party agreements with the two JV companies for shipping ethane from the USA to India, creating a stable, dedicated corridor for energy feedstock movement. The vessels are scheduled for delivery in FY 2028–29
By venturing into specialized marine energy logistics, ONGC is expanding India`s capabilities in a niche, high-value segment of global shipping, helping build institutional know-how, operational preparedness, and strategic capacity that strengthens the broader energy ecosystem
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
Read:
ONGC Enters Ethane Shipping through Joint Venture with MOL, Japan (5th January 2026)
ONGC / PLL execute Ethane Unloading, Storage and Handling Services Term Sheet (3rd December 2025)