New Delhi: Oil and Natural Gas Corporation Limited (ONGC), a Maharatna public sector undertaking, has taken a strategic step in business diversification by entering into Joint Venture Agreements (JVA) and Capital Contribution Agreements with Mitsui O.S.K. Lines Ltd. (MOL), Japan. The agreements were signed for equity participation in two newly formed joint venture companies—Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited—both registered at GIFT City, Gandhinagar.
Equity Participation and Operational Structure
Under the agreements, ONGC will subscribe to 2,00,000 equity shares of ₹100 each in both joint venture companies, acquiring a 50% stake in each entity. Mitsui O.S.K. Lines Ltd., Japan, will hold the remaining 50% equity. Each JV company will own and operate one Very Large Ethane Carrier (VLEC), deployed under the Indian flag for the transportation of ethane from the United States of America. These shipments will meet the feedstock requirements of ONGC Petro Additions Limited (OPaL), a subsidiary of ONGC.
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Strategic Significance and Growth Diversification
The collaboration represents a significant milestone in ONGC’s strategic foray into specialised shipping and energy logistics. By leveraging MOL’s global maritime expertise and ONGC’s strong regional presence and operational capabilities, the partnership aims to:
- Strengthen long-term cooperation between India and international maritime partners.
- Enhance integration across ONGC’s energy value chain.
- Capitalise on emerging opportunities in specialised energy transportation.
- Establish a robust operational footprint in global ethane logistics.
This initiative aligns with the Hon’ble Prime Minister’s Maritime Amrit Kaal Vision 2047, which focuses on national self-reliance, development of world-class maritime infrastructure, and long-term economic resilience.
Government Support and Policy Alignment
The project 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. The JV structure and operational model are expected to contribute significantly to India’s strategic energy security and reduce dependence on external supply chains.
About ONGC
ONGC is India’s flagship Maharatna public sector oil and gas company, engaged in exploration, production, and development of hydrocarbons. With a strong domestic and international presence, ONGC continues to drive energy security, innovation, and sustainable growth while expanding its portfolio into emerging sectors such as energy logistics and value-added petrochemicals.
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