India's Oil and Natural Gas Corporation (ONGC) signed joint venture and capital contribution agreements with Japan's Mitsui OSK Lines (MOL) on January 5, 2026.
Under the agreement, the partnership establishes two entities in which ONGC will subscribe to 200,000 equity shares in each company at INR100 ($1.11) per share, resulting in a 50 per cent equity stake for both partners.
Each joint venture will own and operate one very large ethane carrier (VLEC) to transport ethane from the United States to India.
The Indian-flagged vessels, with a combined estimated cost of $370 million, will be built at a South Korean shipyard. Operations are scheduled to commence in mid-2028 to supply feedstock for ONGC Petro Additions, a subsidiary of ONGC.
The state-owned oil company said the initiative marks its strategic entry into specialised shipping and energy logistics.
By deploying VLECs, the company intends to strengthen value chain integration and capitalise on emerging opportunities in global ethane transportation.
ONGC remarked that the collaboration combines its regional operational presence with the maritime expertise of MOL.
The project was undertaken with guidance from the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM).
