Oil and Natural Gas Corporation Limited (ONGC), through its joint venture companies with Mitsui OSK Lines Limited (MOL), Japan, has signed Shipbuilding Contracts (SBCs) with Samsung Heavy Industries (SHI), South Korea, for the construction of two Very Large Ethane Carriers (VLECs). The contracts were concluded on 27 January 2026.
The agreements were signed in the presence of Hardeep Singh Puri, Minister of Petroleum and Natural Gas; Dr Neeraj Mittal, Secretary, Ministry of Petroleum and Natural Gas; and Arun Kumar Singh, Chairman and CEO, ONGC. The signatories included SK Dwivedi, Chief – BD & JV (ONGC); Hisashi Umemura, Senior Managing Executive Officer (MOL); and Sung-an Choi, CEO (Samsung Heavy Industries).
The project reflects cooperation between India, Japan and South Korea in the energy and maritime sectors. It is intended to strengthen India’s energy logistics framework by securing specialized shipping capacity for ethane transportation, enhancing supply chain stability for petrochemical operations.
ONGC and MOL have established two joint venture companies—Bharat Ethane One IFSC Pvt Ltd and Bharat Ethane Two IFSC Pvt Ltd—in GIFT City, Gujarat. Each company will own and operate one VLEC. The vessels, to be registered under the Indian flag, will each have a cargo capacity of approximately 100,000 cubic meters. They will transport around 600 KTPA of ethane from the United States to India for ONGC Petro additions Limited (OPaL), a subsidiary of ONGC.
ONGC has entered into long-term Time Charter Party agreements with the two joint venture entities to ensure dedicated ethane transportation. Delivery of the vessels is scheduled for FY 2028–29. By developing in-house capacity in specialized marine energy logistics, ONGC is expanding its role in a high-value shipping segment while building operational and institutional expertise within India’s maritime and energy ecosystem.
The initiative aligns with the Government of India’s Maritime Amrit Kaal Vision 2047 and broader efforts to enhance domestic capability and long-term energy resilience. The project has been undertaken with the guidance of the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
ONGC is India’s leading exploration and production company. It plays a central role in the development of domestic oil and gas resources and undertakes strategic initiatives across the energy value chain to support national energy security.
Mitsui OSK Lines, Ltd. is a global shipping company headquartered in Japan, operating a fleet of approximately 900 vessels. Its operations span dry bulk carriers, LNG carriers, car carriers and tankers. In addition to shipping, MOL is involved in logistics, offshore wind power, terminal operations, ferry services and other infrastructure-related businesses.
Samsung Heavy Industries Co, Ltd, established in 1974, is a major shipbuilder in the global offshore and marine industry. The company specializes in high-value vessels, including LNG carriers and Very Large Ethane Carriers, and has significant experience in constructing complex gas carriers. SHI is also engaged in the development of digital and environmentally focused maritime technologies, including autonomous navigation and alternative fuel solutions.
