India's ONGC signs deal with Japan's Mitsui OSK to build ethane carriers
The logo of Oil and Natural Gas Corp's (ONGC) is pictured along a roadside in Ahmedabad, India, September 6, 2016. Picture taken September 6, 2016. REUTERS/Amit Dave/ File Photo
India's Oil and Natural Gas Corporation said on Thursday it has signed an agreement with Japan's second-largest shipping company, Mitsui O.S.K. Lines, to build and operate two very large ethane carriers (VLECs).
Under the agreement, the VLECs will ship imported ethane to ONGC Petro additions Ltd (OPaL), a unit of ONGC that operates a dual-feed cracker facility.
ONGC is planning to source 800,000 tons per year of ethane to secure feedstock for OPaL from May 2028, Reuters reported earlier this year.
The agreement is subject to ONGC board's approval, it said in a statement to the exchanges.
