India’s top oil and gas producer, Oil and Natural Gas Corporation Ltd (ONGC), on Tuesday (January 27) said the company through its joint venture companies with Japan’s Mitsui O.S.K. Lines Ltd (MOL), has signed Ship Building Contracts (SBCs) with Samsung Heavy Industries, South Korea, for the construction of two Very Large Ethane Carriers (VLECs). The contracts mark a fast-tracked collaboration among India, Japan, and South Korea.This initiative aims to strengthen India’s energy ecosystem by securing specialised marine logistics for critical feedstock, enhancing supply chain resilience, and promoting long-term industrial self-reliance. The Indian-flag VLECs will ensure continuity of operations across petrochemicals and downstream value chains dependent on stable ethane supplies.
ONGC and MOL have established two joint venture companies—Bharat Ethane One IFSC Private Ltd and Bharat Ethane Two IFSC Private Ltd—based in GIFT City, Gujarat, with each company owning and operating one VLEC. Each vessel will have a cargo capacity of 100,000 cubic meters and is expected to transport about 600 KTPA of ethane for OPaL, ONGC’s subsidiary.
Also Read: ONGC acquires 50% in two JVs with Mitsui OSK for ₹40 cr to expedite ethane transportLong-term Time Charter Party agreements have also been signed with the JV companies to facilitate the shipping of ethane from the USA to India, establishing a dedicated energy corridor. The VLECs are scheduled for delivery in FY 2028–29.

The signing ceremony was attended by Hardeep Singh Puri, Minister of Petroleum & Natural Gas; Dr Neeraj Mittal, Secretary (MoPNG); and Arun Kumar Singh, Chairman & CEO, ONGC. The contracts were executed by S.K. Dwivedi, Chief – BD&JV (ONGC), Hisashi Umemura, Sr. Managing Executive Officer (MOL), and Sung-an Choi, CEO (Samsung Heavy Industries).

Shares of Oil and Natural Gas Corporation Ltd ended at ₹248.00, up by ₹2.45, or 1.00%, on the BSE.

Also Read: ONGC, Oil India shares gain for fourth straight day on elevated crude prices

Source link

ONGC JV signs shipbuilding contracts with Samsung for two Indian-flag ethane carriers

Like this:

Related

LEAVE A REPLY Cancel reply

Subscribe

RBI Bulletin says Indian economy remains resilient but global risks are rising

12 years of Make in India: What worked, what’s unfinished and what comes next

Why India did not sign an FTA with China, according to Piyush Goyal

EU regulations could push up costs and hurt European businesses, Piyush Goyal says

16th Finance Commission formula gives excessive weight to GSDP than need: UP finance minister

More like this
Related