ONGC and Mitsui O.S.K. Lines Forge Shipbuilding Partnership with Samsung Heavy Industries
Shares of Oil and Natural Gas Corporation (ONGC) are set to attract significant attention on Wednesday following the announcement of a joint venture with Japan’s Mitsui O.S.K. Lines (MOL). This partnership has culminated in the signing of shipbuilding contracts with South Korean shipbuilding giant Samsung Heavy Industries. The announcement was made during the India Energy Week 2026, held in Goa, where ONGC’s shares experienced a modest increase of 1.02%, closing at Rs 248.05 on the Bombay Stock Exchange (BSE).
The shipbuilding contracts involve the construction of two advanced very large ethane carriers (VLECs). ONGC emphasized that the swift conclusion of these contracts signifies robust trilateral cooperation and industrial collaboration among India, Japan, and South Korea. This strategic partnership aims to bolster the maritime capabilities of the involved nations while enhancing the logistics of ethane transportation.
Details of the Joint Venture and Future Plans
The contracts were signed by the newly established joint venture entities, Bharat Ethane One IFSC Pvt Ltd. and Bharat Ethane Two IFSC Pvt Ltd., both located in GIFT City, Gujarat. Each joint venture company will be responsible for owning and operating one of the VLECs. In addition to the shipbuilding contracts, ONGC has also entered into long-term Time Charter Party agreements with these joint venture companies, ensuring a steady operational framework for the vessels.
The VLECs are expected to be delivered in the financial year 2028-29. Each vessel will be registered under the Indian flag and will have a cargo capacity of 100,000 cubic meters. Their primary function will be to transport approximately 600 kilotons per annum (KTPA) of ethane, which is crucial for supporting OPal, a subsidiary of ONGC. This initiative not only aims to enhance ONGC’s operational efficiency but also contributes to the broader goal of strengthening India’s energy infrastructure.
As the maritime industry continues to evolve, this partnership between ONGC, MOL, and Samsung Heavy Industries represents a significant step towards modernizing India’s shipping capabilities and ensuring a reliable supply chain for ethane transportation. The collaboration underscores the importance of international partnerships in achieving technological advancements and operational excellence in the energy sector.
