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ONGC has partnered with Japan’s Mitsui OSK Lines (MOL) to set up two joint ventures in GIFT City, focused on shipping ethane to India.
What’s the deal: the two JV firms - Bharat Ethane One and Bharat Ethane Two will be 50:50 owned by ONGC and MOL. ONGC will invest by buying shares worth ₹2 crore in each JV.
Each JV will own and operate a very large ethane carrier (VLEC) under the Indian flag. These specialised ships will bring ethane from the US to fuel ONGC Petro Additions Ltd’s (OPaL) petrochemical plant in Dahej.
The ships will be built in Korean shipyards, costing about $370 million for both. Ethane imports are expected to begin by mid-2028.
Why it matters: ethane is a key raw material for making plastics and chemicals. By controlling transport, ONGC ensures a steady, long-term supply for OPaL and reduces reliance on changing LNG imports.
Moreover, India’s petrochemical demand is expected to almost double by 2040 & ethane-based production is cheaper and more efficient than traditional naphtha-based routes.
Big theme: India’s ethylene market growing steadily from $4.9 billion in 2024 to $8.1 billion by 2033. This reflects rising demand for plastics and petrochemical products.
As ethane is a key feedstock for making ethylene, this growth directly explains why ONGC is securing this partnership, to support future production at plants like OPaL and reduce raw material risk.
