Upstream public sector giant Oil and Natural Gas Corporation Limited (ONGC) has entered into 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 located in Gift City at Gujarat’s Gandhinagar. ONGC will subscribe to 2,00,000 equity shares at Rs 100 per share in each of the joint venture companies, resulting in a 50 per cent equity stake in each entity, with the remaining 50 per cent held by M/s Mitsui O.S.K. Lines Ltd., Japan.
Each joint venture company will operate a Very Large Ethane Carrier (VLEC) under the Indian flag to transport ethane from the US, meeting the feedstock requirements of ONGC Petroadditions Limited (OPaL), a subsidiary of ONGC. This collaboration between ONGC and MOL signifies a significant step in enhancing long-term cooperation by combining MOL’s global maritime expertise with ONGC’s regional presence and operational capabilities, creating value in the energy transportation and value chain sectors.
The partnership marks ONGC’s strategic foray into business diversification and growth, aiming to leverage emerging opportunities in energy logistics through VLEC deployment for ethane transportation. This move is aligned with the Prime Minister’s Maritime Amrit Kaal Vision 2047, focusing on national self-reliance, world-class maritime infrastructure development, and long-term economic resilience. The initiative has received guidance and support from the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
