ONGC and Mitsui OSK Lines Team Up for Ethane Carrier Venture

State-owned Oil and Natural Gas Corporation (ONGC) has entered a strategic partnership with Japan's Mitsui OSK Lines to build two very large ethane carriers (VLECs), aiming to import essential petrochemical feedstock for its subsidiary.

This collaboration, formalized with a Heads of Agreement, marks a significant step in ensuring a steady supply of ethane for ONGC Petro Additions Limited (OPaL). The ethane will be shipped via these VLECs starting mid-2028, compensating for an expected alteration in liquefied natural gas (LNG) composition sourced from Qatar.

Currently, ONGC imports 7.5 million tonnes per annum of LNG from Qatar, but changes in the contract will lead to a shift to 'lean' gas. The joint venture with Mitsui will facilitate the transportation of 800,000 tonnes of ethane annually, ensuring uninterrupted operations for OPaL's expansive petrochemical complex.

(With inputs from agencies.)