State-run Oil and Natural Gas Corporation (ONGC) has entered into a strategic agreement with Japan’s Mitsui OSK Lines to collaborate on the construction of two Very Large Ethane Carriers (VLECs). These vessels will be used to import ethane, a key petrochemical feedstock, for ONGC’s subsidiary operations.
In a regulatory filing on Thursday, ONGC announced that it had signed a Heads of Agreement (HoA) with Mitsui to jointly build, own, and operate the two ethane carriers. However, the filing did not disclose the financial terms of the deal or the respective equity stakes to be held by the two companies.