CORPORATE
ONGC, Mistui join hands to build, operate two VLECs to import ethane
- IBJ Bureau
- Sep 08, 2025
Mitsui OSK Lines will operate two very large ethane carriers (VLECs) for Oil and Natural Gas Corporation (ONGC) to import the petrochemical feedstock for a subsidiary of the State-owned company, sources have said.
ONGC has entered into a partnership with the Japanese shipping company to build, own and operate two VLECs.
The two companies are currently discussing equity structure of the joint venture, two sources with direct knowledge of the matter have said.
Mitsui is likely to own a majority stake in the ships that would be built in Korean shipyards and the exact equity structure would depend on ONGC’s appetite.
The specialised ships, with an estimated cost of $370 million for the pair, are intended to secure the petrochemical feedstock for ONGC Petro Additions’ (OPaL) Dahej facility, with ethane imports beginning around mid-2028.
According to the sources, it will take about two-and-half-years to build the VLECs.
Mitsui and its partners currently own and operate four liquefied natural gas (LNG) ships for Petronet LNG, India’s biggest LNG importer, and six ethane carriers for Reliance Industries.
The ONGC board is to decide on the exact partnership arrangement, they have added.
ONGC plans to import ethane, starting in mid-2028, to compensate for the altered composition of LNG sourced from Qatar. The State-owned company had floated a tender in March this year for selecting a partner for building the VLECs to import ethane.
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