ONGC Signs Heads of Agreement with Mitsui for Two Ethane Carriers

India’s Oil and Natural Gas Corporation Limited (ONGC) has signed a strategic Heads of Agreement with Japan’s Mitsui O.S.K. Lines Ltd (MOL) to jointly build, own, and operate two Very Large Ethane Carriers (VLECs) aimed at transporting imported ethane to ONGC Petro Additions Limited (OPaL) for petrochemical production. This collaboration is intended to secure a steady and self-reliant supply of ethane, a critical feedstock for producing ethylene used in plastics and synthetic fibers, thereby strengthening India’s petrochemical supply chain and domestic manufacturing capabilities. The agreement, signed on July 3, 2025, reflects a significant downstream expansion for ONGC but remains subject to board approvals from both companies. Alongside this, ONGC is also advancing its corporate social responsibility initiatives by establishing a Disaster Management and Yatri Niwas complex in Baltal, Jammu and Kashmir, to support Amarnath Yatra pilgrims. This new facility, part of a broader plan to develop similar centers across the region, will be inaugurated by government officials on July 4. ONGC’s share price responded positively, closing higher following the announcement.