- ONGC has signed an agreement with Japan’s Mitsui O.S.K. Lines to develop and operate two Very Large Ethane Carriers (VLECs).
- The vessels will transport imported ethane to ONGC Petro additions Ltd (OPaL), supporting its dual-feed cracker operations.
- ONGC aims to source 800,000 tons of ethane annually starting May 2028; the agreement awaits board approval.
India’s Oil and Natural Gas Corporation (ONGC) has entered into an agreement with Mitsui O.S.K. Lines, Japan’s second-largest shipping company, to jointly build and operate two Very Large Ethane Carriers (VLECs). The initiative is aimed at strengthening ONGC’s ethane logistics capabilities to support its petrochemical operations through its subsidiary, ONGC Petro additions Ltd (OPaL), according to Reuters.
Supporting Dual-Feed Cracker Operations with Ethane Supply
Under the proposed agreement, the VLECs will be used to transport imported ethane to OPaL’s dual-feed cracker facility. This move is aligned with ONGC’s plan to import 800,000 tons of ethane annually beginning in May 2028, ensuring a stable and long-term supply of feedstock for its petrochemical production.
Agreement Awaits Final Board Approval
ONGC confirmed that the execution of this agreement is subject to approval from its board of directors. The deal reflects ONGC’s broader strategy to enhance its downstream integration and reduce dependence on naphtha-based feedstock by diversifying to ethane imports through long-term logistical partnerships.
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Source: Reuters
