State-owned oil and gas major ONGC has entered into a strategic joint venture with Japanese shipping company Mitsui OSK Lines (MOL) to strengthen its presence in specialised energy logistics. The Maharatna PSU said it will acquire a 50% stake each in two joint venture companies that will own and operate ethane carriers for transporting feedstock to its petrochemicals arm.
Under the arrangement, ONGC will subscribe to 2,00,000 equity shares of ₹100 each in Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, both incorporated at GIFT City, Gandhinagar. The remaining stake will be held by Mitsui OSK Lines.
Each of the joint ventures will operate one Very Large Ethane Carrier (VLEC) under the Indian flag. These vessels will transport ethane from the United States to India for supply to ONGC Petro Additions Limited (OPaL), ONGC’s downstream petrochemicals subsidiary.
In a regulatory filing, ONGC said the partnership combines MOL’s global maritime expertise with ONGC’s operational scale and regional strength. The collaboration is expected to enhance efficiency across the energy transportation chain while creating long-term value in specialised shipping operations.
The move marks a key step in ONGC’s broader business diversification strategy. By entering ethane shipping, the company aims to capitalise on emerging opportunities in energy logistics and reduce dependence on third-party transportation providers. The initiative is also expected to strengthen integration across ONGC’s upstream, midstream and downstream value chain.
Ethane is a critical feedstock for petrochemical production, and securing dedicated shipping capacity is seen as strategically important for OPaL’s operations. The deployment of Indian-flagged VLECs also aligns with the government’s push to expand India’s maritime footprint in high-value energy transportation.
ONGC said the joint ventures will help build a robust operational presence in specialised shipping while supporting the long-term growth of its petrochemicals and energy logistics businesses.
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