ONGC, through its joint ventures, has signed shipbuilding contracts with Samsung Heavy Industries for two Very Large Ethane Carriers (VLECs). The agreement, finalized on January 27, 2026, marks a trilateral collaboration between India, Japan, and South Korea. These Indian-flagged vessels will bolster India’s energy ecosystem by ensuring a dedicated ethane shipping capacity, supporting supply-chain resilience and long-term industrial self-reliance.
Ethane Carrier Contracts
Oil and Natural Gas Corporation Limited (ONGC), via its joint venture with Mitsui O.S.K. Lines (MOL), Japan, has entered into Ship Building Contracts (SBCs) with Samsung Heavy Industries, South Korea, for constructing two state-of-the-art Very Large Ethane Carriers (VLECs). The contracts were signed on January 27, 2026.
Trilateral Partnership
The completion of these SBCs shows strong trilateral cooperation and industrial partnership among India, Japan, and South Korea.
Strategic Energy Initiative
This undertaking aims to strengthen India’s energy ecosystem by securing specialized marine logistics for critical feedstock. It aims to improve supply-chain resilience and enable long-term industrial self-reliance. By creating dedicated, Indian-flag ethane shipping capacity, ONGC seeks to reinforce national resilience against external disruptions, ensuring continuity of operations across petrochemicals and downstream value chains that depend on stable, predictable input supplies.
Joint Venture Details
ONGC and MOL Japan have established two joint venture companies, Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd., in GIFT City, Gujarat. Each company will own and operate one VLEC. These vessels will support the transportation of about 600 KTPA of ethane for OPaL, a subsidiary of ONGC.
Vessel Specifications and Delivery
The VLECs will be Indian-flagged and have a cargo capacity of one lakh cubic meters each. ONGC has also signed long-term Time Charter Party agreements with the two JV companies for shipping ethane from the USA to India. The vessels are scheduled for delivery in FY 2028–29.
Government Support
This initiative has been undertaken with the guidance and support of the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
Source: BSE
