A joint venture between Oil and Natural Gas Corporation (ONGC) and Japan-based Mitsui O.S.K. Lines (MOL) has awarded a shipbuilding contract valued at approximately $370 million to Samsung Heavy Industries for the construction of two very large ethane carriers (VLECs). The formal agreement is scheduled to be signed during an industry event in Goa.
Samsung Heavy Industries was selected following a global tender process initiated by the ONGC–MOL joint venture for the specialised ethane carriers. The joint venture has also kept the option open to order a third vessel under the same programme at a later stage.
The two ethane carriers will be owned and operated through two special purpose vehicles (SPVs) established at Gujarat International Finance Tec-City (GIFT City). ONGC and MOL will each hold a 50 percent equity stake in both SPVs, reflecting equal partnership in vessel ownership and management.
Once delivered, the ethane carriers will be deployed to transport ethane for ONGC Petro Additions Ltd (OPaL), ONGC’s petrochemical subsidiary, which operates a large integrated petrochemical complex at Dahej in Gujarat. The vessels will play a critical role in securing long-term feedstock supply for OPaL’s operations.
ONGC plans to source approximately 800,000 tonnes per annum (KTPA) of ethane from the United States to support OPaL’s dual-feed cracker facility. The plant is capable of processing a flexible mix of feedstocks, including naphtha, ethane (C2), propane (C3), and butane (C4), allowing greater operational efficiency and cost optimisation.
Commercial operations of the ethane carriers are expected to commence in alignment with OPaL’s expanded feedstock requirements, beginning May 2028 onwards. The project is a key component of ONGC’s broader strategy to strengthen feedstock security, enhance petrochemical integration, and support India’s growing demand for value-added hydrocarbon products.
