ONGC JV Signs Shipbuilding Contracts for Ethane Carriers with Samsung
Filing Summary
Oil and Natural Gas Corporation Ltd (ONGC), through its joint ventures with Mitsui O.S.K. Lines Ltd (MOL), has signed shipbuilding contracts with Samsung Heavy Industries for two Very Large Ethane Carriers (VLECs). These vessels will be Indian-flagged and support the transportation of 600 KTPA of ethane for ONGC’s subsidiary, OPaL. The contracts were signed on January 27, 2026, with delivery scheduled for FY 2028–29. This initiative aligns with India’s energy strategy, enhancing marine logistics capabilities and supporting the country’s energy ecosystem.
Oil and Natural Gas Corporation Ltd (ONGC), through its joint venture companies with Mitsui O.S.K. Lines Ltd (MOL), has entered into shipbuilding contracts with Samsung Heavy Industries for the construction of two Very Large Ethane Carriers (VLECs). The contracts were signed on January 27, 2026, in Goa. These vessels will be Indian-flagged and are intended to enhance India’s energy logistics capabilities.
The financial terms of the contracts have not been disclosed in the filing. However, the agreement involves the construction of two state-of-the-art VLECs, which are expected to support the transportation of approximately 600 KTPA of ethane. The ethane will be transported for ONGC’s subsidiary, OPaL. The vessels will be owned and operated by two joint venture companies, Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd., established in GIFT City, Gujarat.
The scope of the project includes the construction of VLECs with a cargo capacity of one lakh cubic meters each. These vessels will facilitate the transportation of ethane from the USA to India under long-term Time Charter Party agreements signed by ONGC with the joint venture companies. This initiative is part of ONGC’s strategy to secure specialized marine logistics for critical feedstock, thereby improving supply-chain resilience and enabling long-term industrial self-reliance.
The contracts were signed in the presence of key officials, including Hardeep Singh Puri, Minister of Petroleum & Natural Gas, Dr. Neeraj Mittal, Secretary (MoPNG), and Arun Kumar Singh, Chairman & CEO of ONGC. This collaboration reflects strong trilateral cooperation among India, Japan, and South Korea, contributing to India’s energy ecosystem by reinforcing national resilience against external disruptions.
The vessels are scheduled for delivery in FY 2028–29. This timeline aligns with India’s strategic energy goals, as outlined in the Maritime Amrit Kaal Vision-2047, which emphasizes national self-reliance and long-term economic resilience. The initiative has been undertaken with guidance from the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
Mitsui O.S.K. Lines Ltd is a leading Japanese shipping company operating globally with approximately 900 vessels. The company focuses on ocean shipping and various social infrastructure businesses, including logistics and offshore wind power.
Oil and Natural Gas Corporation Ltd is India’s premier exploration and production company. It plays a pivotal role in strengthening national energy security through the development of domestic oil and gas resources and strategic initiatives across the energy value chain.