Top Searches
Advertisement

Mega Movers: ONGC Anchors $370M Ethane Carrier JV with Japan’s MOL


Updated: July 03, 2025 16:41

In a strategic leap toward petrochemical self-reliance, ONGC has partnered with Japan’s Mitsui O.S.K. Lines (MOL) to build, own, and operate two Very Large Ethane Carriers (VLECs), each capable of hauling 50 KTPA of ethane. The $370 million joint venture will ensure uninterrupted feedstock supply to ONGC Petro additions Ltd (OPaL) in Dahej, Gujarat, as India pivots away from Qatar’s “lean” LNG supply starting May 2028.
 
Key Highlights:
 
  • ONGC will hold at least 26% stake, with an option to scale up to 50%; MOL will own the remaining equity.
  • The VLECs will transport 800 KTPA of ethane, likely sourced from the US, to OPaL’s dual-feed cracker plant.
  • Each VLEC will cost $185 million and carry up to 98,000 cubic metres of ethane.
The JV will select shipyards, secure domestic and international funding, and tap into government subsidies.
Mitsui O.S.K. Lines, the world’s second-largest fleet owner, was chosen via ONGC’s global EoI process involving 30+ shipowners.
The move follows Qatar’s shift to supplying lean LNG, which lacks ethane and propane—forcing ONGC to seek alternative sourcing.
 
ONGC’s Dahej plant, built for rich LNG, risks shutdown without ethane imports, making this JV critical for continuity.
MOL’s India footprint expands with this deal, aligning with its “Blue Action 2035” strategy to deepen South Asia ties.
 
This partnership not only secures ONGC’s petrochemical future but also signals India’s growing ambition in global energy logistics.
 
Source: Economic Times Infra, Business Standard, India Infoline

Advertisement

STORIES YOU MAY LIKE

Advertisement

Advertisement