Oil and Natural Gas Corporation Ltd. (ONGC) has signed a heads of agreement with Japan’s Mitsui O.S.K. Lines Ltd. to build and operate two Very Large Ethane Carriers (VLECs). These ships will be used to transport imported ethane to ONGC Petro Additions Ltd. (OPaL).
The ethane will be used as feedstock at OPaL’s facility in Dahej, Gujarat. ONGC stated that the agreement is subject to board approval. A final contract will be signed after necessary clearances.
As per Reuters, ONGC had earlier outlined plans to import up to 800,000 tonnes of ethane annually starting May 2028. The imported ethane will be used for captive consumption at OPaL’s petrochemical plant.
The move is aimed at securing long-term raw material supply for its downstream operations. The ethane will be sourced from multiple international locations.
As per the PTI report, ONGC has already invested around ₹1,500 crore in building a C2/C3 extraction unit at Dahej. This plant separates ethane (C2) and propane (C3) for use in petrochemical manufacturing.
The extracted gases are used in the production of materials like plastics, fibres, and chemicals at OPaL.
Read more: ONGC Approves $412 Million Corporate Guarantee to Support Overseas Ventures!
In the March quarter, ONGC reported a standalone net profit of ₹6,448 crore, down 21.7% from the previous quarter. Revenue from operations rose 3.8% to ₹34,982 crore.
Total expenses grew by 16% to ₹28,289 crore. EBITDA stood at ₹19,007.5 crore, with margins narrowing to 54.3%. A final dividend of ₹1.25 per share has been recommended for fiscal 2025.
ONGC share price was trading at ₹243.89, down 0.066% as of 11:15 AM on July 4, 2025. The stock is down 11.16% in the past year but up 2.01% year-to-date.
The agreement with Mitsui OSK is a step toward securing raw materials for ONGC’s downstream operations. Further updates will depend on board approval and final execution of the contract.
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Published on: Jul 4, 2025, 11:40 AM IST
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