ONGC shares in focus as JV signs shipbuilding deal for 2 ethane carriers; key details

Shares of Oil and Natural Gas Corporation (ONGC) are likely to be in focus on Wednesday as its joint venture with Japan’s Mitsui O.S.K. Lines (MOL) signed shipbuilding contracts (SBCs) with South Korean giant Samsung Heavy Industries.

On Tuesday, shares of ONGC rose 1.02% to settle at Rs 248.05 on the BSE.

The announcement was made at India Energy Week 2026 in Goa. The deal involves the construction of two state-of-the-art very large ethane carriers (VLECs).

“The fast-tracked conclusion of these SBCs reflects strong trilateral cooperation and industrial partnership among India, Japan and South Korea,” the company said in an exchange filing late Tuesday.

The contracts were signed by the newly formed joint venture entities, Bharat Ethane One IFSC Pvt Ltd. and Bharat Ethane Two IFSC Pvt Ltd, which have been set up in GIFT City, Gujarat. Under the agreement, each JV company will own and operate one VLEC, the filing said.

ONGC has also inked long-term Time Charter Party agreements with these JV companies. The vessels are slated for delivery in the financial year 2028-29.

These vessels will be Indian-flag ships with a cargo capacity of one lakh cubic meters each. Their primary mission will be to transport approximately 600 KTPA of ethane to support OPal, a subsidiary of ONGC.