ONGC Partners for Ethane Carriers in Major Petrochemicals Push.

State-run exploration and production behemoth ONGC has inked a pivotal agreement with Japan's Mitsui O.S.K. Lines (MOL) to construct, own, and operate two Very Large Ethane Carriers (VLECs). This strategic move, formalized on July 3, 2025, marks a significant expansion for ONGC into the oil-to-chemicals business as part of its broader diversification strategy.

"In a landmark move, ONGC has signed a Heads of Agreement with Japan’s MOL to build, own and operate two VLECs, redefining how India powers its petrochemical future," ONGC announced. The company emphasized that "these mega vessels will deliver imported ethane to ONGC Petro Additions (OPaL), ensuring a steady, self-reliant supply of feedstock for cutting-edge petrochemical production."

This global partnership is a bold stride in ONGC's downstream expansion, designed to combine innovation, scale, and energy security. The company highlighted the significance of the collaboration, stating, "This is not just a collaboration. It’s ONGC charting the course for the next era of energy." The VLECs are expected to play a crucial role in securing a consistent supply of ethane, a vital raw material for petrochemical manufacturing, thereby enhancing India's self-reliance in this critical sector.