ONGC Shares End 1.5% Higher on Mitsui JV Plan
Shares of Oil and Natural Gas Corporation Ltd (ONGC) ended 1.5% higher on 6th January after the company said it has signed joint venture and capital contribution agreements with Japan’s Mitsui OSK Lines Ltd (MOL) to set up two joint venture entities in GIFT City, Gandhinagar. ONGC said the two... The post ONGC Shares End 1.5% Higher on Mitsui JV Plan appeared first on Equitypandit.
Shares of Oil and Natural Gas Corporation Ltd (ONGC) ended 1.5% higher on 6th January after the company said it has signed joint venture and capital contribution agreements with Japan’s Mitsui OSK Lines Ltd (MOL) to set up two joint venture entities in GIFT City, Gandhinagar.
ONGC said the two joint venture entities—Bharat Ethane One IFSC Private Ltd and Bharat Ethane Two IFSC Private Ltd—will each receive an equity subscription of 2,00,000 shares from the company at Rs 100 per share. After the transaction, ONGC will hold a 50% stake in each venture. The remaining 50% will be owned by Mitsui OSK Lines.
Each JV will own and operate a very large ethane carrier (VLEC) under the Indian flag. These vessels will transport ethane from the United States. This will supply feedstock to ONGC Petro Additions Ltd (OPaL), a subsidiary of ONGC.
The move marks ONGC’s entry into specialised energy logistics as part of its broader diversification strategy. Through ethane transportation, the company aims to strengthen integration across its value chain. It also seeks to build a presence in niche shipping operations.
The two specialised vessels will be built at Korean shipyards at an estimated cost of $370 million. They are expected to support ethane supplies for OPaL’s Dahej facility. Ethane imports are planned to begin around mid-2028.
Mitsui and its partners currently operate four LNG carriers for Petronet LNG Ltd and six ethane carriers for Reliance Industries Ltd. ONGC plans to start importing ethane from mid-2028. This will offset changes in the composition of LNG sourced from Qatar, as outlined in a tender floated by the company in March this year.
At 3:30 PM, shares of ONGC ended 1.55% higher at Rs 241.79 on NSE.
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The post ONGC Shares End 1.5% Higher on Mitsui JV Plan appeared first on Equitypandit.
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