Oil and Natural Gas Corporation (ONGC) is set to expand its footprint beyond upstream operations by entering the specialised ethane shipping segment. The company partnered with Japan’s Mitsui OSK Lines (MOL) to jointly own and operate very large ethane carriers (VLECs). This move marks a significant diversification into energy logistics. Under the arrangement, ONGC will hold a 50% stake in two joint ventures established for the project.
Indian-Flagged Vessels to Support Petrochemical Operations
The VLECs will sail under the Indian flag and transport ethane from the United States to ONGC Petro additions Ltd (OPaL), ONGC’s petrochemical subsidiary. Through this dedicated shipping capacity, ONGC aims to secure a reliable supply of ethane, a critical feedstock for OPaL’s integrated petrochemical complex at Dahej, Gujarat. The project will enhance supply-chain security and reduce exposure to market and logistics disruptions.
Operations Targeted for Mid-2028
ONGC will commission the ethane carriers by mid-2028. Once commissioned, they will play a central role in supporting OPaL’s long-term production plans. They will also ensure uninterrupted feedstock availability for downstream petrochemical operations.
Long-Term Commitment
The project involves an estimated investment of around $370 million, highlighting ONGC’s commitment to strengthening its downstream and logistics capabilities. By investing directly in specialised shipping assets, ONGC is positioning itself to secure long-term ethane supplies while extending its presence across the energy value chain. As reported by devdiscourse.com, the partnership with Mitsui OSK Lines reflects ONGC’s broader strategy. It aims to integrate logistics with petrochemical operations and build resilience beyond its traditional upstream portfolio.
