Is ONGC Making Waves in Ethane Shipping with Mitsui O.S.K. Lines?
Synopsis
In a significant move towards diversifying its operations, ONGC has partnered with Mitsui O.S.K. Lines to establish joint ventures in ethane shipping. This collaboration aims to enhance energy logistics capabilities and aligns with India's maritime vision for sustainable growth.
Key Takeaways
ONGC partners with Mitsui O.S.K.
Lines for ethane shipping.
Joint ventures aim to enhance energy logistics in India.
Each venture will operate a Very Large Ethane Carrier.
Supports India’s Maritime Amrit Kaal Vision 2047.
ONGC diversifies its operations into shipping sector.
New Delhi, Jan 5 (NationPress): The prominent public sector entity, Oil and Natural Gas Corporation Limited (ONGC), has entered into joint venture agreements with Japan's Mitsui O.S.K. Lines Ltd. (MOL) for equal ownership stakes of 50 percent in two new joint venture companies — Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, both established in the Gift City located in Gandhinagar, Gujarat.
The Maharatna company will invest in 200,000 equity shares, priced at Rs 100 each for both joint ventures. Following this equity investment, ONGC will possess a 50 percent equity interest in each entity, while the remaining stake will be owned by Mitsui O.S.K. Lines Ltd., Japan.
Each joint venture will operate a Very Large Ethane Carrier (VLEC) registered under the Indian flag, dedicated to transporting ethane from the United States to fulfill the feedstock needs of ONGC Petroadditions Limited (OPaL), a subsidiary of ONGC.
This collaboration represents a crucial step in enhancing long-term cooperation between ONGC and MOL. By capitalizing on MOL's international maritime expertise and ONGC's regional strength and operational skills, this partnership is anticipated to generate considerable value throughout the energy transportation and value chain.
The initiative also signifies ONGC's strategic move towards business diversification and expansion. By utilizing VLECs for ethane transportation, ONGC aims to seize emerging opportunities in energy logistics and reinforce its integration within the value chain while building a robust operational foothold in specialized shipping.
This venture aligns with the Prime Minister's Maritime Amrit Kaal Vision 2047, which emphasizes national self-sufficiency, the establishment of world-class maritime infrastructure, and sustainable economic resilience. The initiative is supported by the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance, according to a statement released by ONGC.
Point of View
I believe this collaboration between ONGC and Mitsui O.S.K. Lines not only strengthens India's position in energy logistics but also supports the nation's long-term maritime ambitions. This move showcases ONGC's commitment to innovation and sustainability in a rapidly evolving energy landscape.
NationPress
9 May 2026
Frequently Asked Questions
What are the joint ventures formed by ONGC?
ONGC has formed two joint ventures: Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited.
What is the purpose of the joint ventures?
The joint ventures aim to operate Very Large Ethane Carriers (VLECs) for transporting ethane from the US to India.
How much stake does ONGC hold in the joint ventures?
ONGC holds a 50 percent equity stake in each of the joint ventures.
What is the significance of this venture?
This venture enhances cooperation between ONGC and MOL, aligning with India's Maritime Vision 2047 for self-reliance and economic resilience.
Who is supporting this initiative?
The initiative is supported by the Ministry of Petroleum and Natural Gas and DIPAM under the Ministry of Finance.
