Shares of Oil and Natural Gas Corporation (ONGC) surged over 6% in trade after the company announced a major strategic move into specialised marine energy logistics through a joint venture with **Mitsui O.S.K. Lines (MOL) Japan. The development marks a significant expansion of ONGC’s role beyond upstream energy into high-value global shipping infrastructure.
ONGC and MOL Japan have incorporated two joint venture entities—Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd.—at GIFT City, Gujarat. Each JV will own and operate one Very Large Ethane Carrier (VLEC), creating a dedicated logistics backbone for ethane transportation to India.
The VLECs will be Indian-flagged vessels, each with a cargo capacity of one lakh cubic metres. Together, the two ships will support the annual transportation of around 600 KTPA of ethane for ONGC Petro additions Limited (OPaL), a subsidiary of ONGC. To ensure long-term operational stability, ONGC has signed Time Charter Party agreements with both JV companies for shipping ethane from the United States to India. The vessels are scheduled for delivery in FY 2028–29.
This move establishes a stable and dedicated ethane supply corridor between the US and India, reducing dependence on third-party shipping and enhancing supply chain security for India’s petrochemical sector. Market participants view the development as a structurally positive step, reflecting ONGC’s long-term strategic planning and diversification into downstream logistics.
By venturing into specialised marine energy logistics, ONGC is helping India enter a niche, capital-intensive segment of global shipping. The initiative is expected to build institutional expertise, operational preparedness, and strategic maritime capacity, strengthening the country’s broader energy ecosystem and improving resilience against global supply disruptions.
