ONGC Shares Edge Higher After Completing Investment in Ethane Shipping Joint Ventures

Oil and Natural Gas Corporation (ONGC) has completed its equity investment in two joint venture companies formed with Japan’s Mitsui O.S.K. Lines. 

The investment relates to the ownership and operation of specialised ethane transport vessels to support ONGC’s petrochemical supply chain. 

The development was disclosed through a regulatory filing, while the company’s share price recorded modest gains in early trading.

Completion of Joint Venture Investment

ONGC informed stock exchanges that it has been allotted equity shares in two joint venture entities — Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited — through private placement.

The company subscribed to 2,00,000 equity shares of ₹100 each in both entities, resulting in a 50% shareholding in each joint venture. 

With this allotment, ONGC has formally become an equal partner with Mitsui O.S.K. Lines in both companies.

Structure and Purpose of the Joint Ventures

Both joint venture companies were incorporated in September 2025 and have not commenced commercial operations yet. Each entity will own a Very Large Ethane Carrier (VLEC), which will be deployed to transport ethane from the United States to India. 

The shipments are intended to meet the feedstock requirements of ONGC Petro additions Limited, a subsidiary of ONGC.

The VLECs will operate under the Indian flag, aligning with the company’s logistics and supply chain plans.

Regulatory and Transaction Details

The investment has been executed in cash and does not fall under related party transactions. Approval for forming the joint ventures has been obtained from the Department of Investment and Public Asset Management. 

The acquisition process was scheduled for completion in January 2026, in line with earlier disclosures made by the company.

ONGC Share Price Performance

ONGC shares traded marginally higher in the morning session on 23 January 2026. The stock was recorded at ₹244.54, up ₹0.53 or 0.22%. The previous close stood at ₹244.01, with the day’s trading range between ₹241.55 and ₹245.30.

Read More: Belrise Industries Shares Gain as Company Expands into Aerospace Through French Asset Acquisition.

Conclusion

ONGC’s completion of its investment in ethane shipping joint ventures with Mitsui O.S.K. Lines reflects continued focus on securing supply-chain infrastructure for its petrochemical operations. Market participants may monitor the progress of vessel deployment, operational timelines and potential impact on ONGC’s downstream business integration in the coming quarters.

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