New Delhi, Jan 5 : Upstream public sector giant Oil and Natural Gas Corporation Limited (ONGC) on Monday signed joint venture agreements with Japan’s Mitsui O.S.K. Lines Ltd. (MOL) for a 50 per cent stake each in two joint venture entities -- Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, registered in Gift City at Gujarat’s Gandhinagar.
"The Maharatna company will subscribe to 2,00,000 equity shares, of Rs 100 per share, in each of the joint venture companies. Upon completion of the equity subscription, the ONGC will hold a 50 per cent equity stake in each of the joint venture entities, with the remaining 50 per cent held by M/s Mitsui O.S.K. Lines Ltd., Japan," the company said in a statement.
Each joint venture company will own and operate one Very Large Ethane Carrier (VLEC). The VLECs will operate under the Indian flag and will be deployed for the transportation of ethane from the US to meet the feedstock requirements of the ONGC Petroadditions Limited (OPaL), a subsidiary of the ONGC.
This strategic collaboration constitutes a significant milestone in strengthening long-term cooperation between the ONGC and the MOL.
The initiative also marks the ONGC's strategic entry into business diversification and growth. Through the deployment of VLECs for ethane transportation, the ONGC aims to capitalise on emerging opportunities in energy logistics, strengthen integration across its value chain, and establish a robust operational presence in specialised shipping.
"The venture is closely aligned with the Prime Minister’s Maritime Amrit Kaal Vision 2047, which emphasises national self-reliance, development of world-class maritime infrastructure, and long-term economic resilience. The initiative has been undertaken with the guidance and support of the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance," the ONGC statement said.
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