ONGC has partnered with Japan’s Mitsui O.S.K. Lines (MOL) to form a joint venture for owning and operating two Very Large Ethane Carriers (VLECs) worth $370 million

To transport ethane for its Dahej-based ONGC Petro additions Ltd (OPaL) plant. ONGC will hold at least 26% stake, with the option to increase to 50%, while MOL, the world’s second-largest fleet owner, will hold the remainder. The VLECs will haul 800 KTPA of ethane, likely from the U.S., starting May 2028, to feed OPaL’s dual-feed cracker plant. This move follows a shift in LNG sourcing from Qatar, where ONGC’s existing supply will switch to “lean” LNG, lacking ethane. The joint venture will manage shipyard selection, financing, and construction. The deal strengthens MOL’s presence in India, aligning with its ‘Blue Action 2035’ strategy to deepen collaborations with Indian firms and be part of the country’s growth in energy and shipping sectors.