New Delhi: ONGC Ltd, India’s leading oil and gas public sector enterprise, has acquired a 50% stake in Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited through private placement. The acquisition establishes joint ventures (JVs) with Japan’s Mitsui O.S.K. Lines Ltd. (MOL) to operate Very Large Ethane Carriers (VLECs) for the transportation of ethane, a key feedstock for ONGC Petro Additions Limited (OPaL).
Details of the Acquisition
ONGC has been allotted:
- 2,00,000 equity shares of Bharat Ethane One IFSC Private Limited (face value Rs 100 each)
- 2,00,000 equity shares of Bharat Ethane Two IFSC Private Limited (face value Rs 100 each)
The equity subscription, conducted through private placement, has resulted in ONGC holding a 50% joint venture stake in both companies alongside MOL, Japan.
Earlier, the two entities were established as 50:50 JVs between ONGC and MOL for the purpose of owning and operating Very Large Ethane Carriers under the Indian flag.
Purpose of the Joint Venture
The Very Large Ethane Carriers (VLECs) will be deployed for the import of ethane from the United States to India. The ethane transported by these vessels will serve as feedstock for OPaL, enabling the production of petrochemical products and strengthening India’s domestic petrochemical supply chain.
The JVs are part of ONGC’s strategy to secure reliable feedstock supplies for its subsidiary OPaL while fostering international collaboration through partnerships with global shipping leaders like Mitsui O.S.K. Lines.
Strategic Significance
This move by ONGC is expected to:
- Ensure consistent ethane supply for OPaL’s petrochemical operations
- Strengthen India’s petrochemical manufacturing capabilities
- Enhance international collaboration in energy logistics and shipping
- Support India’s energy security and feedstock diversification strategy
By operating the VLECs under the Indian flag, the initiative also aligns with the Make in India and domestic shipping promotion efforts.
About ONGC
Oil and Natural Gas Corporation Limited (ONGC) is India’s largest oil and gas exploration and production company and a public sector undertaking under the Ministry of Petroleum & Natural Gas. ONGC plays a critical role in ensuring energy security for India, developing upstream and downstream energy assets, and supporting subsidiaries like ONGC Petro Additions Limited (OPaL) in building a robust domestic petrochemical ecosystem.
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