Prime Highlights
- ONGC shares surged 6.42% on the NSE after the company announced strategic shipbuilding contracts with Samsung Heavy Industries for specialized energy transport vessels.
- The project marks ONGC’s expansion into dedicated marine logistics for ethane imports, supporting energy security and reducing dependence on foreign shipping operators.
Key Facts
- ONGC, through joint ventures with Mitsui O.S.K. Lines, will build two Very Large Ethane Carriers (VLECs) with a capacity of 100,000 cubic meters each, to be delivered in FY 2028–29.
- The vessels will transport nearly 600,000 tonnes per annum of ethane from the US to India for OPaL, ONGC’s petrochemical subsidiary, and will operate under the Indian flag.
Background
Shares of Oil and Natural Gas Corporation Limited (ONGC) rose sharply on Wednesday after the company announced the signing of shipbuilding contracts with Samsung Heavy Industries. The stock climbed 6.42% to ₹263.86 on the National Stock Exchange, reacting positively to the strategic energy logistics move.
ONGC, through its joint ventures with Japan’s Mitsui O.S.K. Lines (MOL), signed contracts on Monday with South Korea-based Samsung Heavy Industries to construct two Very Large Ethane Carriers (VLECs). These vessels will operate under the Indian flag and are expected to be delivered in the financial year 2028–29. Petroleum Minister Hardeep Singh Puri and ONGC Chairman Arun Kumar Singh attended the signing ceremony.
The company has set up two joint venture firms, Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd., at GIFT City in Gujarat. Each joint venture will own and operate one vessel. The carriers will have a cargo capacity of 100,000 cubic meters each and will transport around 600 thousand tonnes per annum of ethane from the United States to India. The ethane will supply OPaL, ONGC’s petrochemicals subsidiary.
ONGC shares opened at ₹249.20, higher than the previous close of ₹247.95. During the day, the stock rose to an intraday high of ₹266.20, hitting a new 52-week high. Trading stayed strong, with more than 239 lakh shares traded and a total value of over ₹624 crore. Even though the price rose, sell orders were slightly higher than buy orders during the session.
The project supports the government’s Maritime Amrit Kaal Vision 2047 and aims to build dedicated shipping capacity for critical energy feedstock. With this step, ONGC is expanding into specialized marine energy transport and reducing reliance on foreign shipping operators.
ONGC’s market capitalisation stood at about ₹3.32 lakh crore, with the stock trading at a price-to-earnings ratio of 7.35.