Japanese shipping major Mitsui O.S.K. Lines (MOL) is set to partner with Oil and Natural Gas Corporation (ONGC) to build and operate two very large ethane carriers (VLECs), ensuring feedstock supplies for ONGC Petro Additions Ltd. (OPaL) at Dahej, Gujarat.
Industry sources indicate MOL will likely take a majority stake in the joint venture, though the final equity structure will depend on ONGC’s investment commitment. The two carriers, estimated at $370 million and to be built at Korean shipyards, are scheduled for delivery ahead of mid-2028, when ethane imports are expected to commence. Each vessel will require around two-and-a-half years to construct.
The initiative comes in response to Qatar’s revised 2028 LNG supply contract, which shifts to lean gas stripped of ethane and propane. To safeguard feedstock, ONGC has already invested ₹1,500 crore in a C2/C3 extraction facility at Dahej to support OPaL’s massive petrochemical complex.
OPaL operates Southeast Asia’s largest standalone dual-feed cracker with a 1.1 million tonne annual ethylene capacity. ONGC plans to import and transport about 800,000 tonnes of ethane each year to sustain operations.
MOL, which already operates six ethane carriers for Reliance Industries and four LNG carriers for Petronet LNG, will extend its footprint in India through this partnership. ONGC’s board is expected to finalize the structure of the venture in the coming months.
