Japan's Mitsui to Run ONGC's Ethane Carriers

ONGC has partnered with Mitsui to build, own & operate two VLECs, with discussions ongoing on the equity structure of the proposed joint venture

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NEW DELHI: Japanese shipping giant Mitsui O.S.K. Lines (MOL) will operate two very large ethane carriers (VLECs) for state-owned Oil and Natural Gas Corporation (ONGC), which is planning to import petrochemical feedstock for its subsidiary ONGC Petro Additions Ltd (OPaL), according to sources.

ONGC has partnered with Mitsui to build, own and operate the two VLECs, with discussions ongoing on the equity structure of the proposed joint venture. Two people with direct knowledge of the matter said Mitsui is likely to hold a majority stake in the vessels, which are expected to be constructed in South Korean shipyards. The final equity share will depend on ONGC's investment appetite.