RIL makes Japan's Mitsui OSK Lines strategic partner in 6 ethane carriers

RIL had sourced these carriers as part of its Ethane gas project to transport the compound from US to its plants in India

Reliance Industries (RIL) has signed a deal with Mitsui OSK Lines (MOL) for a strategic stake sale in six very large ethane carriers (VLECs), the company said on Wednesday.

RIL had sourced these carriers as part of its Ethane gas project to transport the compound from the United States to its plants in India. Currently, MOL, a Japanese shipping company, is operating these vessels and will become a joint owner once the deal gets regulatory approvals. The Mukesh Ambani-promoted company did not disclose the deal value or the size of the stake being sold.

“Reliance Ethane Holding, a wholly-owned subsidiary of RIL, has a 100 per cent holding in six limited liability companies that own very large ethane carriers. MOL and a strategic minority investor have signed binding definitive agreements for a strategic investment in the six special purpose limited liability companies (SPVs), each owning a VLEC,” the company said in its statement.

“Given MOL is currently the operator of all the six VLECs, investment by MOL will deepen our relationship with them and ensure continued safe and efficient operations of the VLECs. We welcome MOL as a strategic partner into the SPVs as they move beyond the current role of an operator to being a joint owner and in the SPVs,” said PMS Prasad, Executive Director, RIL.