Oil and Natural Gas Corporation Limited (ONGC) and Japan-based Mitsui O.S.K. Lines Ltd (MOL) have signed a Heads of Agreement (HoA) on July 3, 2025, to collaborate on the development, ownership, and operation of two Very Large Ethane Carriers (VLECs).
In the exchange filing, the company shared, “Oil and Natural Gas Corporation Limited (ONGC) and Mitsui O.S.K lines Ltd, Japan (MOL) have signed a Heads of Agreement on 3rd July 2025 to enter into a partnership to build, own and operate two Very Large Ethane Carriers (VLECs).”
The proposed VLECs will be used to transport imported ethane to ONGC Petro Additions Limited (OPaL), a wholly-owned subsidiary of ONGC. The ethane will serve as feedstock for OPaL’s petrochemical operations. This move is aimed at securing a stable supply of feedstock for domestic production.
The partnership is subject to approval from the respective Boards of both companies. Further details regarding the project structure, timelines, and investment commitments will be shared upon the final signing of the partnership agreement.
