Japan's Mitsui O.S.K. Lines, Ltd (MOL), the world's second largest fleet owner by fleet size, on Tuesday signed a 15-year charter contract with state-owned Oil and Natural Gas Corporation Ltd (ONGC) for two Indian flagged very large ethane carriers (VLECs) the two entities will jointly own for hauling the fuel to the petrochemical plant in Dahej run by ONGC Petro additions Ltd (OPaL).

The state of the art 100,000 cubic meter capacity very large ethane carriers with GTT Mark III membrane tank, will be equipped with dual fuel main engines capable of burning ethane as fuel. The VLECs will be built at South Korea's Samsung Heavy Industries Co., Ltd, and are slated to be delivered in late 2028 or later.

ET Infra reported on Monday that the very large ethane carriers will be constructed at Samsung Heavy Industries.

The time charter contract expands MOL's VLEC fleet to 16 vessels, the largest in the world.

The ethane carriers will be owned and operated by two separate equal joint venture companies Bharat Ethane One IFSC Pvt Ltd and Bharat Ethane Two IFSC Pvt Ltd - registered in Gujarat International Finance Tec-City (GIFT City), a special economic zone located in Gujarat.

The time charter contract was signed on Tuesday during the India Energy Week 2026 in Goa.

The two very large ethane carriers will be used for hauling ethane from the US to the Dahej, Gujarat based petrochemical plant run by ONGC Petro additions Ltd, a subsidiary of ONGC, a 'Maharatna' public sector undertaking.

The strategic collaboration represents a significant milestone in strengthening long-term cooperation between ONGC and MOL, the oil and gas explorer said previously.

"By leveraging MOL's global maritime expertise alongside ONGC's strong regional presence and operational capabilities, the partnership is expected to create substantial value across the energy transportation and value chain," it said.

The shipping collaboration also marks a strategic business diversification for ONGC and aligns with the government's Maritime Amrit Kaal Vision 2047 which focuses on self-reliance, development of world-class maritime infrastructure and long-term economic resilience.

"Through the deployment of VLEC's for ethane transportation, ONGC aims to capitalise on emerging opportunities in energy logistics, strengthen integration across its value chain, and establish a robust operational presence in specialised shipping," it said on January 5.

Since entering ethane transport business in 2016 as the world's first VLEC operator, MOL has steadily built a strong track record in liquefied ethane transport and established itself as a leader in VLEC management and operations.

"Our experience with liquefied gas carriers, including VLECs, along with its operational expertise within the Indian special economic zone located in GIFT City, where these joint ventures are based, was recognized and led to the signing of this long-term charter agreement," MOL said.

MOL has positioned India-one of the fastest-growing economies in Asia as a priority market.

"Through reliable and stable transportation, MOL has supported India's evolving energy needs over the years. Currently, the number of energy transportation vessels serving India (including vessels on order) totals approximately 40," MOL said.

"With a global fleet of over 900 vessels-the world's second largest-MOL's expertise, safety record, and scale, backed by the world's largest VLEC and LNG carrier fleets, have been key factors leading to the conclusion of the agreement," the Japanese transportation giant said.

Source: ET Infra. Com

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