India’s Oil and Natural Gas Corporation (ONGC) has announced the signing of an agreement with Japan’s Mitsui O.S.K. Lines, the country’s second-largest shipping company, to construct and operate two Very Large Ethane Carriers (VLECs). The collaboration aims to facilitate the transportation of imported ethane to ONGC Petro additions Ltd (OPaL), a wholly owned subsidiary of ONGC.
OPaL operates a dual-feed cracker facility, and the imported ethane will serve as a critical feedstock. ONGC has outlined plans to source 800,000 tonnes of ethane annually beginning May 2028, according to a Reuters report earlier this year.
The agreement remains subject to final approval by ONGC’s board of directors, the company noted in a formal communication to stock exchanges.
-Reuters
