ONGC Takes Strategic Step to Strengthen India’s Energy Logistics 🚢⚡

ONGC, through its joint venture companies with Mitsui O.S.K. Lines (Japan), has signed shipbuilding contracts with Samsung Heavy Industries (South Korea) for the construction of two Indian-flag Very Large Ethane Carriers (VLECs). This move marks a significant step toward strengthening India’s energy security and supply-chain resilience by creating dedicated marine logistics for critical energy feedstock. The initiative reflects strong industrial cooperation between India, Japan, and South Korea. The two vessels will be owned and operated by ONGC’s joint venture companies — Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd., based in GIFT City, Gujarat. Each VLEC will have a cargo capacity of 1 lakh cubic meters and will support the transportation of around 600 KTPA of ethane for ONGC Petro Additions Limited (OPaL). ONGC has also entered into long-term time charter agreements, creating a stable and dedicated shipping corridor for transporting ethane from the USA to India. The vessels are scheduled for delivery in FY 2028–29. By entering specialized energy shipping, ONGC is expanding India’s capabilities in a high-value, niche segment of global maritime logistics. This initiative supports the Government’s vision of Make in India, Atmanirbhar Bharat, and Maritime Amrit Kaal Vision 2047, while building long-term institutional capability and national self-reliance in energy infrastructure. Overall, the project enhances India’s preparedness against global supply disruptions and strengthens the downstream petrochemical ecosystem dependent on reliable feedstock supply. Disclaimer: This post is for informational and educational purposes only and should not be considered investment advice. Please consult a registered financial advisor before making any investment decisions. 👉 Follow for crisp updates on PSU stocks, strategic deals, order wins & market insights