 "ONGC")
Oil and Natural Gas Corporation Ltd (ONGC) has incorporated two joint venture companies with Japan’s Mitsui OSK Lines Ltd (MOL) to enter the ethane shipping business, the company said on Monday.
The explorer would subscribe to 200,000 equity shares, of Rs 100 per share, in the two companies—Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited—which are registered in GIFT City, Gandhinagar.
ONGC would hold a 50 per cent equity stake in each of the joint venture entities upon completion of the equity subscription, with the remaining 50 per cent held by Mitsui.
Each joint venture company would own and operate one very large ethane carrier (VLEC), which would be deployed for the transportation of ethane from the US to meet the feedstock requirements of ONGC Petro additions Ltd (OPaL), a subsidiary of ONGC.
“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,” ONGC said.
Through the deployment of VLECs for ethane transportation, ONGC aims to capitalise on emerging opportunities in energy logistics, strengthen integration across its value chain, and establish a robust operational presence in specialised shipping.
ONGC’s entry into ethane shipping comes amid the government’s emphasis on the development of maritime infrastructure and long-term economic resilience. ONGC said the initiative has been undertaken with the guidance of the Ministry of Petroleum and Natural Gas (MoPNG) and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
