ONGC ties up with Mitsui for ethane shipping foray

STATE-OWNED FIRM TO TAKE 50% STAKE IN TWO JOINT VENTURES

- PRESS TRUST OF INDIA

OILAND NATURAL Gas Corporation (ONGC) will take a 50% stake in two joint venture companies that will own and operate very large ethane carriers in partnership with Japan's Mitsui OSK Lines, marking the state-owned firm's entry into specialised ethane shipping.

ONGC said in a statement that it had signed joint venture and capital contribution agreements with Mitsui OSK Lines (MOL) to invest in Bharat Ethane One IFSC and Bharat Ethane Two IFSC, both registered in GIFT City, Gandhinagar. MOL will hold the remaining 50% stake in each entity.

Each joint venture will own one VLEC, which will be operated by MOL and sail under the Indian flag. The vessels will transport ethane from the United States to supply ONGC Petro additions (OPaL), ONGC's petrochemicals subsidiary.