Japanese shipping major Mitsui O.S.K. Lines (MOL) will partner with Oil and Natural Gas Corporation (ONGC) to build and operate two very large ethane carriers (VLECs), securing feedstock supplies for ONGC Petro Additions Ltd (OPaL) at Dahej, Gujarat.
According to sources, MOL is expected to hold a majority stake in the joint venture, with the final equity structure subject to ONGC’s investment appetite. The carriers, to be built at Korean shipyards at an estimated cost of $370 million, are slated for delivery in time for ethane imports beginning mid-2028. Each vessel will take roughly two-and-a-half years to construct.
The move comes as ONGC prepares to offset the altered composition of LNG from Qatar, whose revised 2028 supply contract shifts to lean gas stripped of ethane and propane. ONGC had earlier invested around ₹1,500 crore in a C2/C3 extraction facility at Dahej to supply feedstock to OPaL’s mega petrochemical complex.
OPaL operates Southeast Asia’s largest standalone dual-feed cracker, with a capacity of 1.1 million tonnes of ethylene per annum. ONGC plans to source and transport about 800,000 tonnes of ethane annually to sustain operations.
MOL already operates six ethane carriers for Reliance Industries and four LNG carriers for Petronet LNG. The ONGC board is expected to take a final call on the partnership structure soon.