ONGC-MOL JV to deploy Indian flag ethane carriers via GIFT City, boosting energy EXIM and maritime self-reliance.
Oil and Natural Gas Corporation has entered a strategic joint venture with Japan’s Mitsui OSK Lines to own and operate two very large ethane carriers. The agreements, signed on 5 January 2026, establish two entities, Bharat Ethane One IFSC and Bharat Ethane Two IFSC, domiciled in GIFT City, Gujarat.
The partnership marks the energy major’s diversification into specialised maritime logistics. Each entity will manage a vessel registered under the Indian flag to transport ethane from the United States to the petrochemical complex at Dahej.
The project leverages new government policies to strengthen India’s maritime self-reliance and energy security:
- Financing and Incentives: By basing operations in GIFT City, the venture can access competitive international funding. This follows the recent granting of infrastructure status to large commercial vessels.
- Investment: The two specialised carriers, estimated to cost $370 million, will be constructed in South Korean shipyards.
- Feedstock security: Imports are scheduled to commence by mid-2028, ensuring a steady supply of feedstock for petrochemical production and reducing dependence on foreign shipping lines for essential energy imports.
This collaboration aligns with the national vision to augment domestic shipping tonnage and integrate the energy value chain through advanced logistics.
SOURCE – ET INFRA
