Oil and Natural Gas Corporation (ONGC) has partnered with Mitsui O.S.K. Lines (MOL), Japan, in a joint venture to ship ethane. The agreement, signed on January 5, 2026, involves ONGC subscribing to equity shares in two joint venture entities. This strategic move aims to diversify ONGC’s business and capitalize on emerging opportunities in energy logistics, strengthening its value chain through specialized shipping. ONGC will hold a 50% equity stake in each entity.
Strategic Partnership for Ethane Transportation
Oil and Natural Gas Corporation Limited (ONGC) has formalized Joint Venture Agreements with M/s Mitsui O.S.K. Lines Ltd. (MOL), Japan, on January 5, 2026. This collaboration involves subscribing to equity shares in two joint venture entities: Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, both registered in Gift City, Gandhinagar.
Equity and Investment Details
ONGC will subscribe to 2,00,000 equity shares, priced at ₹100 per share, in each of the joint venture companies. Upon completion of this subscription, ONGC will hold a 50% equity stake in each venture, with the remaining 50% held by M/s Mitsui O.S.K. Lines Ltd., Japan.
Operational Framework
Each joint venture company will own and operate one Very Large Ethane Carrier (VLEC) under the Indian flag. These VLECs will transport ethane from the United States to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary of ONGC.
Significance and Vision
This strategic collaboration strengthens the long-term cooperation between ONGC and MOL. Leveraging MOL’s global maritime expertise alongside ONGC’s strong regional presence, the partnership is expected to create substantial value across the energy transportation and value chain. This initiative aligns with ONGC’s strategic entry into business diversification and growth. It also supports the Hon’ble Prime Minister’s Maritime Amrit Kaal Vision 2047, emphasizing national self-reliance and the development of world-class maritime infrastructure.
Source: BSE
