MOL Signs Long-Term Contract for Ethane Carriers with ONGC Amid India Energy Week 2026

MOL Secures Ethane Carrier Contract with ONGC

In a significant move for the energy sector, Mitsui O.S.K. Lines (MOL) has established a long-term charter agreement with the Oil and Natural Gas Corporation Limited (ONGC) during India Energy Week 2026. This contract involves the provision of two newly constructed Very Large Ethane Carriers (VLECs) as part of a joint venture formed between MOL and ONGC.

These cutting-edge vessels, each boasting a capacity of 100,000 cubic meters, will incorporate dual-fuel engines that utilize ethane as a fuel source. Built by Samsung Heavy Industries Co., Ltd. in South Korea, these vessels are set to be completed by the end of 2028, subsequently engaging in the transportation of liquefied ethane from the United States to India.

This agreement not only signifies the expansion of MOL's fleet to the largest VLEC fleet worldwide, totaling 16 vessels, but also demonstrates a commitment to expanding energy transportation infrastructure in response to the growing demand for gas and other energy resources in India.

Since initiating its ethane transportation operations in 2016 as the world’s first VLEC operator, MOL has developed a robust track record in the management and operation of VLECs. MOL’s extensive experience in liquefied gas shipping, alongside its operational ventures in Indian economic zones, has been instrumental in securing this long-term charter.

MOL’s strategic group management plan, titled “BLUE ACTION 2035”, emphasizes regional strategies, positioning Asia as a key area for economic growth. India, in particular, is seen as a region of significant potential, with MOL actively pursuing business initiatives within its borders. The partnership with ONGC reflects MOL's determination to enhance energy supply frameworks and Logistics infrastructures that are crucial for meeting the soaring energy demand in the region.

By diversifying and enhancing stable revenue streams, MOL aims to achieve profitability even during maritime downturns. Expansion of the world-renowned LNG and VLEC fleets and extending long-term contracts are crucial components of this strategy. Leveraging the wealth of experience gained over the years, MOL is set to evolve into a global social infrastructure leader, committed to supporting daily lives and fostering a prosperous future from the blue seas.

Additional Joint Venture Details

As part of this collaboration, two joint ventures have been established within the International Financial Services Centre located in Gujarat International Finance Tec-City.

- Joint Venture Overview

- Name: Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited
- Location: Gujarat International Finance Tec-City, India
- Investment Ratio: MOL 50%, ONGC 50%
- Flag: India
- Fleet Holdings: Each joint venture will own one VLEC, totaling two vessels.

The liquefied ethane transported by these vessels will be supplied as a feedstock to the Petrochemicals plant operated by ONGC’s subsidiary, ONGC Petro additions Limited, located in Dahej, Gujarat.