8 months ago
ONGC and GAIL Ink Deals with Mitsui OSK
ONGC and GAIL, two big Indian energy companies, made important deals with a Japanese company called Mitsui O.S.K. Lines (MOL).
ONGC teamed up with MOL to build two special ships called very large ethane carriers (VLECs) with a South Korean company named Samsung Heavy Industries.
These ships will carry a special gas called ethane for another company called OPal, which is part of ONGC.
The ships will be ready in 2028-29 and will fly the Indian flag.
GAIL also made a deal with MOL for a liquefied natural gas (LNG) carrier named ‘GAIL BHUWAN’.
This carrier will transport LNG for GAIL.
Both ONGC and GAIL saw their share prices go up after these deals.
ONGC's joint venture with Japan's Mitsui O.S.K. Lines (MOL) signed shipbuilding contracts with Samsung Heavy Industries for two ethane carriers.
GAIL (India) inked a long-term charter agreement with Mitsui O.S.K. Lines (MOL) for an LNG carrier named ‘GAIL BHUWAN’.
The deals were announced at India Energy Week 2026 in Goa and involve the construction of two very large ethane carriers (VLECs) and one LNG carrier.
The joint venture entities for ONGC are based in GIFT City, Gujarat, while GAIL's deal is structured through LNG Japonica Shipping Corporation Ltd.
Each VLEC will have a cargo capacity of one lakh cubic meters and will transport approximately 600 KTPA of ethane for OPal, an ONGC subsidiary, and the vessels are scheduled for delivery in the financial year 2028-29.
- Who
- ONGC, GAIL, Mitsui O.S.K. Lines (MOL), Samsung Heavy Industries
- What
- Signing of shipbuilding contracts for two ethane carriers and one LNG carrier
- Where
- GIFT City, Gujarat, India
- When
- Announced at India Energy Week 2026, contracts signed on Tuesday and Wednesday
- Why
- To transport ethane for OPal, a subsidiary of ONGC, and LNG for GAIL
Key facts
- Companies Involved
- ONGC, GAIL, Mitsui O.S.K. Lines (MOL), Samsung Heavy Industries
- Vessels
- Two very large ethane carriers (VLECs) and one LNG carrier named ‘GAIL BHUWAN’
- Location of JV Entities
- GIFT City, Gujarat, India
- Delivery Year
- 2028-29 for VLECs
- Cargo Capacity
- One lakh cubic meters each for VLECs
- Primary Mission
- Transport 600 KTPA of ethane for OPal and LNG for GAIL
- ONGC Share Price Change
- 1.02% rise to Rs 248.05 on BSE
- GAIL Share Price Change
- 3.56% rise to Rs 165.70 on BSE
Timeline
Petronet LNG expands, partners with ONGC for ethane handling.
ONGC decides to build VLECs for ethane transport.
ONGC teams up with MOL for shipping, seals VLEC deal.
Two VLECs ordered, set to sail by 2028-29.
Quotes
Kumar
ONGC official
“We are now in the market for another TSP covering the Western Offshore, excluding the Mumbai High field. The tender has been floated and we have personally communicated with the CEOs of 10 major E&P operators, including Shell, BP, Chevron, ExxonMobil, and TotalEnergies.”
businesstoday.in
“As of now, we expect production to be slightly higher than last year. The fields remain largely the same, the challenges also remain similar.”
businesstoday.in
OP Sinha
ONGC's Director for Exploration
“The company is in active talks with ExxonMobil regarding joint bids in the upcoming Open Acreage Licensing Policy (OALP) 10 round, but we are yet to hear back from Exxon.”
businesstoday.in
Sources
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