ONGC Enters Ethane Shipping with Mitsui OSK Partnership

ENERGY
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AuthorVihaan Mehta|Published at:
ONGC Enters Ethane Shipping with Mitsui OSK Partnership
Overview

Oil and Natural Gas Corporation (ONGC) has launched a strategic joint venture with Japan's Mitsui OSK Lines to enter specialized ethane shipping operations. The partnership establishes two entities in GIFT City, Gujarat, which will own and operate Very Large Ethane Carriers (VLECs) to transport U.S. ethane for ONGC's subsidiary, OPaL, thereby strengthening the energy giant's value chain and logistics.

ONGC Ventures into Ethane Shipping with Mitsui OSK

Oil and Natural Gas Corporation (ONGC) announced on Monday a significant strategic partnership with Japanese shipping major Mitsui OSK Lines (MOL). The collaboration marks ONGC's entry into specialized energy transportation, specifically ethane shipping operations.

The companies signed joint venture and capital contribution agreements, establishing two new entities: Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, both registered in GIFT City, Gandhinagar. This initiative has the backing of the Ministry of Petroleum and Natural Gas and DIPAM.

ONGC will hold a 50% stake in each joint venture company by acquiring 2,00,000 equity shares of ₹100 each. MOL will hold the remaining 50% stake. These entities will each own and operate a Very Large Ethane Carrier (VLEC), which will fly the Indian flag.

These specialized VLECs are intended to transport ethane from the United States. The ethane will serve as crucial feedstock for ONGC Petro additions Limited (OPaL), a subsidiary of the state-run energy major.

ONGC stated that deploying VLECs for ethane transport will allow it to capitalize on emerging energy logistics opportunities. It also aims to strengthen its value chain integration and establish a significant operational presence in specialized shipping.

The initiative aligns with the Indian government's Maritime Amrit Kaal Vision 2047. This vision focuses on enhancing national self-reliance, developing world-class maritime infrastructure, and fostering long-term economic resilience.

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