India’s Oil and Natural Gas Corporation said it has signed joint venture and capital contribution agreements with Japan’s Mitsui O.S.K. Lines to enter ethane shipping by setting up two equal partnerships to own and operate very large ethane carriers, according to the company’s statement.
ONGC will subscribe to 200,000 equity shares of ₹100 each ($1.11 each, using 1 INR = $0.0111) in both Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, registered in GIFT City, Gandhinagar, leaving ONGC and Mitsui O.S.K. Lines with 50% each in both entities.
Each joint venture will operate one VLEC under the Indian flag to transport ethane from the United States to supply ONGC Petro additions Ltd, ONGC’s petrochemicals subsidiary.
According to PTI, the two specialised ships are expected to be built at South Korean shipyards at an estimated combined cost of about $370 million, with ethane imports expected to begin around mid-2028. PTI also reported that ONGC will be responsible for sourcing ethane and will hire the vessels from the joint ventures for shipping.
