New Delhi: In a major step towards strengthening India’s energy security, a consortium led by Oil and Natural Gas Corporation Limited (ONGC) has signed shipbuilding contracts for two Very Large Ethane Carriers (VLECs) with Samsung Heavy Industries (SHI) of South Korea.
The contracts were finalized on January 27, 2026, marking a significant milestone in India’s efforts to secure long-term ethane supply for its growing petrochemical sector.
Key Highlights of the VLEC Deal
- Ship Owner: Two joint venture companies formed by ONGC and Japanese shipping major Mitsui O.S.K. Lines (MOL)
- Location of JVs: GIFT City, Gujarat
- Shipbuilder: Samsung Heavy Industries, South Korea
- Cargo Capacity: One lakh cubic meters per vessel
- Flag: Indian-flagged vessels
- Delivery Timeline: FY 2028–29
Dedicated Shipping Corridor for Ethane Imports
The two VLECs will establish a dedicated shipping corridor to transport nearly 600,000 tonnes per annum (KTPA) of ethane from the United States to India. The imported ethane will be used as a key feedstock by ONGC Petro additions Limited (OPaL), a subsidiary of ONGC.
This arrangement will ensure a stable and long-term supply of ethane, which is critical for petrochemical manufacturing and downstream industries in India.
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Strategic Importance for India’s Energy Security
The project has been undertaken with guidance from the Ministry of Petroleum & Natural Gas and the Department of Investment and Public Asset Management (DIPAM). It supports several national priorities, including:
- Strengthening energy logistics through Indian-owned and Indian-operated shipping capacity
- Reducing dependence on foreign shipping fleets and spot markets
- Enhancing supply chain resilience for petrochemical feedstocks
- Developing niche maritime expertise in the high-value VLEC segment
Boost to Atmanirbhar Bharat and Maritime Vision 2047
The initiative aligns closely with the government’s Atmanirbhar Bharat mission and the Prime Minister’s Maritime Amrit Kaal Vision 2047. By entering the specialized VLEC segment, India is building long-term institutional capability in energy transportation and maritime operations.
The swift execution of this India–Japan–South Korea partnership highlights strong international cooperation aimed at securing global energy supply chains through industrial collaboration.
About Oil and Natural Gas Corporation (ONGC)
ONGC is India’s largest upstream oil and gas company and a Maharatna public sector enterprise. It plays a central role in ensuring the country’s energy security, with operations spanning exploration, production, and energy infrastructure development in India and overseas.
