ONGC, MOL & Samsung HI sign contract for 2 Indian VLECs to boost energy security

GANDHINAGAR : In a significant move to secure India’s energy supply chain, a consortium led by Oil and Natural Gas Corporation Limited (ONGC) has signed shipbuilding contracts for two Very Large Ethane Carriers (VLECs). The contracts were finalized with Samsung Heavy Industries (SHI) of South Korea on January 27, 2026, marking a key step in India’s strategic push for energy self-reliance.

Key Details of the Deal:
Partnership: The VLECs will be owned and operated by two joint venture companies formed by ONGC and Japanese shipping major Mitsui O.S.K. Lines (MOL) in GIFT City, Gujarat.

Builder: Samsung Heavy Industries, a global leader in gas carrier construction, will build the vessels.

Specifications: Each vessel will be an Indian-flag carrier with a massive cargo capacity of one lakh cubic meters.

Purpose: The VLECs will create a dedicated shipping corridor to transport approximately 600,000 tonnes per annum (KTPA) of ethane from the USA to India. The ethane will serve as critical feedstock for ONGC Petro additions Limited (OPaL), an ONGC subsidiary.

Timeline: The vessels are scheduled for delivery in FY 2028-29.

Strategic Significance for India:
This initiative, undertaken with guidance from the Ministry of Petroleum & Natural Gas and DIPAM, is a cornerstone project for India’s energy security. It directly supports multiple national objectives:

Strengthening Energy Logistics: Creates dedicated, Indian-controlled shipping capacity for a critical petrochemical feedstock, reducing reliance on volatile spot markets and foreign fleets.

Enhancing Supply Chain Resilience: Secures a long-term, stable supply of ethane, ensuring operational continuity for downstream petrochemical value chains crucial for manufacturing.

Building Niche Maritime Expertise: Enters India into the high-value, specialized segment of VLEC ownership and operation, building institutional knowledge and strategic capacity.

Advancing Self-Reliance: Aligns perfectly with the PM’s Maritime Amrit Kaal Vision-2047 and the Atmanirbhar Bharat mission, fostering an ecosystem founded on long-term economic and energy resilience.

The fast-tracked conclusion of this trilateral partnership between India, Japan, and South Korea underscores a shared commitment to securing global energy supply chains through industrial cooperation.