CORPORATE
ONGC in two JVs with Mitsui to transport ethane by large carriers
- IBJ Bureau
- Jan 06, 2026
Oil and Natural Gas Corporation (ONGC) will take a 50 per cent stake in two joint venture (JV) companies that will own and operate very large ethane carriers (VLECs) in partnership with Japan’s Mitsui OSK Lines. These deals will mark the State-owned company’s entry into specialised ethane shipping.
ONGC has said that it has signed JV and capital contribution agreements with Mitsui OSK Lines to invest in Bharat Ethane One IFSC and Bharat Ethane Two IFSC, both registered in GIFT City, Gandhinagar.
Mitsui will hold the remaining 50 per cent stake in each entity. Each JV will own one VLEC, which will be operated by Mitsui and sail under the Indian flag. The vessels will transport ethane from the US to supply ONGC Petro additions (OPaL), ONGC’s petrochemicals subsidiary.
“The Maharatna company shall subscribe to 2,00,000 equity shares of Rs 100 per share in each of the JV companies. Upon completion of the equity subscription, ONGC shall hold a 50 per cent equity stake in each of the JV entities, with the remaining 50 per cent held by Mitsui,” a statement has added.
ONGC has said that the partnership leverages Mitsui’s global shipping expertise and ONGC’s scale and market presence to strengthen integration across the energy value chain.
The move represents a strategic diversification for ONGC into energy logistics and specialised shipping, aimed at securing long-term ethane supplies and capturing value beyond upstream operations.
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