Oil and Natural Gas Corporation Limited (ONGC) has entered the ethane shipping business after signing joint venture and capital contribution agreements with Japan-based Mitsui O.S.K. Lines Ltd. (MOL), the company said.
The agreements, signed on January 5, 2026, involve equity participation in two joint venture entities—Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited—both registered at GIFT City, Gandhinagar.
Under the arrangement, ONGC will subscribe to 2,00,000 equity shares of ₹100 each in both joint venture companies. Following the equity subscription, ONGC and MOL will each hold a 50 per cent stake in the two entities.
Each joint venture company will own and operate one Very Large Ethane Carrier (VLEC). The vessels will operate under the Indian flag and will be deployed to transport ethane from the United States to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary of ONGC.
The partnership represents a milestone in long-term cooperation between ONGC and MOL, combining MOL’s global maritime expertise with ONGC’s operational presence to create value across the energy transportation value chain stated the regulatory filing.
The venture marks its strategic entry into specialised shipping as part of its broader business diversification and growth plans, aimed at strengthening value chain integration and building capabilities in energy logistics.
The initiative aligns with the Prime Minister’s Maritime Amrit Kaal Vision 2047, which focuses on self-reliance, development of maritime infrastructure and long-term economic resilience. ONGC said the project has been undertaken with guidance and support from the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
