The Ethane Lifeline: ONGC and Mitsui OSK’s New Partnership

Oil and Natural Gas Corporation (ONGC) has entered into a strategic partnership with Japanese shipping major Mitsui OSK Lines to operate two Very Large Ethane Carriers (VLECs). These vessels will supply ethane feedstock to ONGC Petro Additions Ltd. (OPaL) at its Dahej petrochemical complex in Gujarat.

The VLECs, to be constructed at leading Korean shipyards, are estimated to cost around USD 370 million and are expected to be operational in two-and-a-half years, enabling ethane imports by mid-2028.

This move is aimed at securing a stable supply of feedstock for OPaL’s Dahej plant, which houses Southeast Asia’s largest standalone dual-feed cracker. ONGC has been steadily building its petrochemical capabilities, starting with the commissioning of a C2 (ethane) and C3 (propane) extraction unit in 2008–09 at an investment of ₹1,500 crore, followed by the launch of the OPaL petrochemical complex in 2017.

The partnership underscores ONGC’s focus on strengthening India’s petrochemical infrastructure and reducing dependency on spot market feedstock.

News by Rahul Yelligetti.