India’s Oil and Natural Gas Corporation Limited (ONGC) signed joint venture agreements and capital contribution agreements with Japan’s Mitsui O.S.K. Lines Ltd. (MOL) on January 5 to subscribe equity shares in two joint venture entities, according to a NSE stock exchange announcement.
The entities are Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, registered in Gift City, Gandhinagar.
Upon completion of the equity subscription, ONGC shall hold a 50% equity stake in each of the joint venture entities, with the remaining 50% held by Mitsui O.S.K. Lines Ltd., Japan.
Each joint venture company shall own and operate one very large ethane carrier (VLEC).
The VLECs shall operate under the Indian flag and shall be deployed for the transportation of ethane from the United States of America to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary of ONGC.
The initiative marks ONGC’s strategic entry into business diversification and growth.
“Through the deployment of VLECs for ethane transportation, ONGC aims to capitalise on emerging opportunities in energy logistics, strengthen integration across its value chain, and establish a robust operational presence in specialised shipping,” stated the regulatory filing.
