Japanese shipping group Mitsui O.S.K. Lines (MOL) has struck a charter deal with India’s state-owned Oil and Natural Gas Corporation Limited (ONGC), which enables South Korea’s Samsung Heavy Industries Co., Ltd. to build two very large ethane carriers (VLECs).
For that purpose, MOL and ONGC have established two joint ventures based in India, Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, with each company operating one VLEC under a 50:50 equity ratio between MOL and ONGC.
As informed, the two joint ventures and ONGC signed a 15-year charter contract for the two VLEC newbuildings during the India Energy Week 2026.
The 100,000 cubic meter VLECs will be built at Samsung Heavy Industries Geoje Shipyard with delivery expected for late 2028 or later, after which the vessels will be engaged in transporting liquefied ethane from the U.S. to India.
The liquefied ethane to be transported is scheduled to be supplied as feedstock to the petrochemical plant operated by ONGC subsidiary ONGC Petro Additions Limited in Dahej, Gujarat, India.
The two newbuildings will be equipped with dual fuel main engines capable of burning ethane as fuel.
Each VLEC will measure 230m in length, with 36.6m beam and 11.9m full-load draft. The deal takes MOL’s VLEC fleet to 16 vessels, said to be the largest such fleet in the world.
MOL and ONGC have established the two joint ventures within the International Financial Services Center in Gujarat International Finance Tec-City, an Indian Special Economic Zone.
