Oil and Natural Gas Corporation of India has entered into an agreement with Japanese shipbuilding company Mitsui O.S.K. Lines. As per the agreement, Mitsui O.S.K. Lines will build, own and operate two Very Large Ethane Carriers (VLEC), which will be used by ONGC for the import of ethane.
According to an exchange filing by ONGC, the two companies signed a Heads of Agreement on July 3. The company said the arrangement is further subject to the approval of the Board of Directors.
Additionally, ONGC said that the Very Large Ethane Carriers will be used by ONGC Petro Additions Limited (OPal), a subsidiary of the company, for importing ethane. The VLEC is a specialised ship used for the transportation of ethane gas over long distances. The ship has a capacity of carrying about 150,000 cubic meters of liquefied ethane.
Supply chain modernisation
Oil and Natural Gas Corporation of India is working towards the modernisation of its supply chain. On June 30, the company called for suitable companies to transform its Vendor Managed Inventory.
The company said that it is seeking a model that can reduce the turnaround time and optimise its inventory. The company said that it is looking to roll out the Vendor Management Model in a phased manner.
The company aims to roll out the model in the west zone first, which consists of Mumbai, Gujarat and Rajasthan.