Recently, India′s Oil and Natural Gas Corporation (ONGC) and Japan′s Mitsui OSK Lines (MOL) officially signed a joint venture agreement to jointly invest in the establishment of two new ethane transportation entities in India, Bharat Ethane One IFSC and Bharat Ethane Two IFSC. Under the agreement, ONGC will subscribe to 200,000 shares in each joint venture at INR 100 per share, holding a 50% stake, while MOL retains the remaining 50% ownership.

The two joint ventures will each own one very large ethane carrier (VLEC) and operate under the Indian flag. These vessels will be dedicated to transporting ethane feedstock from the United States to India. The transported ethane will supply ONGC′s subsidiary, ONGC Petro Additions Ltd., providing critical feedstock for its mixed feedstock steam cracking unit in Bhatinda, which has an annual production capacity of 1.1 million tons of ethylene and 400,000 tons of propylene.

By integrating MOL′s global maritime expertise with ONGC′s regional operational strengths, the collaboration aims to enhance synergies in energy transportation and the entire value chain. The project has received guidance and support from the Department of Petroleum and Natural Gas and the Public Asset Management Division under the Ministry of Finance, reflecting ONGC′s strategic expansion into energy logistics and specialized vessel transportation.