Our Bureau
Mumbai
Oil and Natural Gas Corporation (ONGC) has partnered with Japan’s Mitsui OSK Lines to operate two very large ethane carriers (VLECs) that will supply feedstock to ONGC Petro Additions (OPaL) at its Dahej plant in Gujarat. The vessels, estimated to cost USD 370 million, will be built in Korean shipyards and are expected to be operational by mid-2028. This move is part of ONGC’s strategic effort to secure ethane imports for the Dahej facility, which houses Southeast Asia’s largest standalone dual-feed cracker.
The Dahej plant plays a crucial role in India’s petrochemical push. ONGC had earlier established a C2 (ethane) and C3 (propane) extraction unit at Dahej in 2008-09, followed by the OPaL petrochemical complex in 2017. The two new VLECs will enhance the capacity to import ethane, a key feedstock necessary for the plant’s operations, significantly boosting the region’s petrochemical production capabilities.
The expected ethane imports from mid-2028 will support the Dahej plant in meeting growing domestic and international demand for petrochemical products. By collaborating with Mitsui OSK Lines, a reputed shipping company, ONGC is ensuring efficient and reliable logistics for these vital raw materials.
This initiative aligns with broader national goals to strengthen the domestic petrochemical industry by ensuring steady feedstock supplies and reducing dependency on fluctuating local production. The introduction of these shipping assets represents the onset of a new phase in India’s petrochemical infrastructure and supply chain modernization. The ethane imports and enhanced logistics capacity are important for India’s ambitions to grow its petrochemical sector as part of a wider energy and industrial strategy.
This collaboration between ONGC and Mitsui is seen as a vital step to bolster India’s petrochemical feedstock imports, thereby underpinning the production capabilities of the Dahej plant and supporting the country’s economic growth trajectory in the sector.
