India's Oil and Natural Gas Corp (ONGC) has announced its intention to establish joint ventures for the construction of Very Large Ethane Carriers (VLECs). According to a document published on the company’s website, ONGC is actively seeking partners to build and operate these specialized vessels to secure feedstock for its petrochemical plant in western India.
The initiative aims to supply 800,000 tonnes per year of ethane to ONGC Petro additions Ltd (OPaL), a subsidiary of ONGC, which operates a dual feed cracker. Ethane deliveries are projected to commence by May 2028.
"ONGC is seeking partnership with companies with experience in the operation and management of VLECs, very large gas carriers and liquefied natural gas carriers in the global market," the document states.
The proposed joint ventures are envisioned to handle both domestic and international financing, as well as the selection of shipyards for VLEC construction. ONGC will retain responsibility for ethane shipping and VLEC chartering from the newly formed joint entities. Interested parties are required to submit their expressions of interest by March 27.
Oil and Natural Gas Corp (ONGC) is India's largest crude oil and natural gas company, contributing around 70% of the country's domestic production, and is a Fortune Global 500 company.