ONGC JVs sign shipbuilding contracts with Samsung Heavy Industries for 2 Indian-flag ethane carriers

New Delhi/Goa: Oil and Natural Gas Corporation Ltd (ONGC), through its joint venture companies with Japan’s Mitsui O.S.K. Lines (MOL), has signed shipbuilding contracts with Samsung Heavy Industries (SHI), South Korea, for the construction of two Indian-flag Very Large Ethane Carriers (VLECs).

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The contracts have been signed on Tuesday during India Energy Week 2026, marking a significant step towards strengthening India’s energy logistics and supply-chain resilience. The agreement reflects growing industrial cooperation between India, Japan and South Korea in the energy and maritime sectors.

The signing took place in the presence of the Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, Secretary, Ministry of Petroleum and Natural Gas Dr Neeraj Mittal, and ONGC Chairman and CEO Arun Kumar Singh. The contracts were executed by senior representatives from ONGC, MOL and Samsung Heavy Industries.

ONGC and MOL have jointly established two special purpose vehicles namely Bharat Ethane One IFSC Pvt Ltd and Bharat Ethane Two IFSC Pvt Ltd, at GIFT City, Gujarat, with each company owning and operating one VLEC. The vessels will be used to transport around 600 thousand tonnes per annum (KTPA) of ethane from the US to India for ONGC Petro additions Limited (OPaL), a subsidiary of ONGC.

Each VLEC will have a cargo capacity of one lakh cubic metres and will sail under the Indian flag. ONGC has also entered into long-term time charter agreements with the joint venture companies to ensure a stable and dedicated ethane supply corridor. The vessels are scheduled for delivery in FY 2028–29.

ONGC said the initiative will help strengthen India’s downstream petrochemical value chain by ensuring reliable access to critical feedstock, while also building domestic capabilities in specialised marine energy logistics. The project aligns with the government’s Maritime Amrit Kaal Vision 2047 and the broader goal of creating an Atmanirbhar energy ecosystem.

The initiative has been undertaken with support from the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM).

ONGC is India’s leading exploration and production company and plays a key role in enhancing national energy security through strategic initiatives across the energy value chain.

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