Japanese shipping giant Mitsui O.S.K. Lines (MOL) is collaborating with Oil and Natural Gas Corporation (ONGC) to construct and operate two very large ethane carriers (VLECs). These vessels will ensure a steady supply of feedstock for ONGC Petro Additions Ltd. (OPaL) in Dahej, Gujarat. Sources indicate that MOL is likely to hold a majority stake in the venture, though the final equity distribution will depend on ONGC’s investment.
The two carriers, with an estimated cost of $370 million, will be built in South Korea and are expected to be delivered by mid-2028, coinciding with the anticipated start of ethane imports. Construction of each vessel will take approximately two and a half years.
This partnership arises following Qatar’s revision of its 2028 LNG supply contract, which now excludes ethane and propane. To mitigate feedstock challenges, ONGC has invested ₹1,500 crore in a C2/C3 extraction facility at Dahej to bolster OPaL’s extensive petrochemical operations.
OPaL, home to Southeast Asia’s largest standalone dual-feed cracker, has an annual ethylene capacity of 1.1 million tonnes and plans to import around 800,000 tonnes of ethane yearly. MOL aims to expand its Indian operations with this initiative, as ONGC’s board prepares to finalize the joint venture’s structure in the coming months.
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