Oil and Natural Gas Corporation (ONGC) has strengthened its downstream supply chain by acquiring a 50 per cent stake in two special purpose companies – Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited – through a private placement route. The move formalises joint ventures with Japan-based shipping major Mitsui O.S.K. Lines, aimed at transporting ethane for ONGC’s petrochemical operations.
Under the transaction, ONGC has been allotted 2,00,000 equity shares each in both companies, with a face value of ₹100 per share. Following the allotment, ONGC and Mitsui O.S.K. Lines hold equal ownership in the two entities, making them 50:50 joint ventures.
The two companies were set up to own and operate Very Large Ethane Carriers (VLECs), which will transport ethane from the United States to India. The imported ethane will be used as a key feedstock by ONGC Petro Additions Limited (OPaL), ONGC’s flagship petrochemical subsidiary.
Officials said the arrangement is a strategic step to ensure long-term and reliable availability of ethane for OPaL’s operations. By securing shipping capacity through joint ownership of vessels, ONGC aims to reduce supply risks and strengthen the domestic petrochemical value chain.
The partnership also reflects ONGC’s broader strategy of combining upstream and downstream integration with international collaboration. Mitsui O.S.K. Lines brings global expertise in operating specialised gas carriers, while ONGC provides long-term cargo commitment and market linkage in India.
In addition to securing feedstock, the operation of the VLECs under the Indian flag aligns with the government’s push to promote domestic shipping and enhance energy logistics capabilities.
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ONGC said the joint venture structure will support India’s energy security goals, help diversify feedstock sources, and provide greater stability to the country’s growing petrochemical sector.
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