Japanese shipowner Mitsui OSK Lines (MOL) is partnering up with India’s Oil and Natural Gas Corporation (ONGC) to build and operate very large ethane carriers (VLECs).
According to the expression of interest, the deal, structured as a joint ventur,e will see the contracting of two newbuild VLECs that will transport imported ethane to ONGC Petro additions Ltd (OPaL), ONGC’s petrochemical arm operating a dual-feed cracker in Dahej, Gujarat. The plant is scheduled to start receiving 800,000 tonnes of imported ethane annually from May 2028 as part of ONGC’s effort to diversify and secure feedstock supplies.
Under the terms of the jv, ONGC will hold a minimum 26% equity stake, with the flexibility to increase its participation up to 50%, while the remaining shares will be held by MOL.
MOL entered the VLEC business in 2014 and has since expanded its presence in the sector. In March this year, the Tokyo-based company ordered two VLECs at Samsung Heavy Industries in South Korea taking its orderbook at the Geoje shipyard to five 100,000 cu m vessels delivering between 2027 and 2028 into a long-term charter with SCG Chemicals, a unit of Thailand’s Siam Cement Group.
MOL also has three VLECs under construction at HD Hyundai Heavy Industries yard in Ulsan. These 98,000 cu m newbuilds, tied to charter contracts with India’s Reliance Industries, should deliver in the first half of 2027.
On a fully delivered basis, the number of VLECs managed and operated by MOL currently stands at 14 vessels out of about 90 VLECs delivered or on order.
