ONGC enters JV with Japan's Mitsui for ethane shipping; acquires 50% stake

ONGC to acquire 50% stake in ethane carriers run by Japan's Mitsui

State-owned ONGC on Monday said that it will take a 50 per cent stake each in two joint venture (JV) companies that will own and operate ethane carriers in partnership with Japanese shipping major Mitsui OSK Lines (MOL).

 

Under the agreements, ONGC will subscribe to 200,000 equity shares of ₹100 each in Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, both registered in Gift City, Gandhinagar. 

 

The Maharatna company said each joint venture will operate one Very Large Ethane Carrier (VLEC) under the Indian flag. The vessels will transport ethane from the United States to supply it to ONGC Petro Additions Limited (OPaL), ONGC’s petrochemicals subsidiary.

 

"By leveraging MOL’s global maritime expertise alongside ONGC’s strong regional presence and operational capabilities, the partnership is expected to create substantial value across the energy transportation and value chain," the company said in a BSE filing.

 

It also said that the move is a part of ONGC's attempt at business diversification. Through its entry into ethane shipping, the company  said that it aims to capitalise on emerging opportunities in energy logistics. It also seeks to strengthen integration across its value chain and build a robust operational presence in specialised shipping, it added.