ONGC acquires 50% in two JVs with Mitsui OSK for ₹40 cr to expedite ethane transport

Oil and Natural Gas Corporation Limited (ONGC) on Thursday, January 22, said it has completed its equity investment in two joint venture companies formed with Japan’s Mitsui O.S.K. Lines Ltd, strengthening its logistics capabilities for ethane transportation to India.

In a regulatory filing, ONGC said it has been allotted 2,00,000 equity shares each in Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, at a face value of ₹100 per share, through private placement. With

this investment of ₹40 crore in total, ONGC has become a 50% joint venture partner in both entities alongside Mitsui O.S.K. Lines Ltd.

Read more: ONGC, Oil India shares gain for fourth straight day on elevated crude prices

The two joint ventures, incorporated in September 2025 and registered at GIFT City in Gandhinagar, are yet to commence operations. Each JV will own one very large ethane carrier (VLEC), which will be deployed to transport ethane from the United States to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), ONGC said.

The acquisition does not fall under related party transactions, and ONGC clarified that neither the promoter nor the promoter group has any interest in the entities beyond the JV structure. The state-owned company also said approvals from the Department of Investment and Public Asset Management (DIPAM) have been obtained, with the transaction expected to be completed in January 2026.

The move is seen as a strategic step to secure long-term ethane supply logistics for OPaL’s petrochemical operations, while also expanding ONGC’s presence in the specialised shipping segment through partnerships.

Also read: ONGC may get $500 million in unpaid dividends if Venezuela sanctions lifted; Stock gives up gains

Shares of ONGC Ltd ended 0.47% higher at ₹243.50 ahead of the announcement on Thursday. The stock has gained 3.98% in the past one month.