MOL expands ethane carrier fleet with South Korea-built pair, secures long-term India charter

On 28 January, MOL announced the establishment of two joint ventures with India’s state-owned Oil and Natural Gas Corp Ltd (ONGC) to co-operate on the construction and charter of two very large ethane carriers (VLECs). Each joint venture will be equally owned, with MOL and ONGC holding 50% stakes, and each company operating one VLEC.

According to the disclosure, the 100,000-m³ VLEC pair will be constructed at Samsung Heavy Industries (SHI) in South Korea, with delivery scheduled for 2028 or later.

The announcement coincided with SHI’s own 28 January disclosure that it had secured an order from an Asia-based shipowner for two ethane carriers worth approximately US$300M, with deliveries through the first quarter of 2029. Shipbroking and market sources have identified MOL as the buyer of these vessels.

MOL and ONGC have agreed on a 15-year long-term charter, under which the vessels will transport liquefied ethane from the US to India. The pair will feature dual-fuel main engines capable of burning ethane as fuel.

Notably, MOL had previously contracted SHI in late 2024 for the construction of three 100,000-m³ ethane carriers, fixed for long-term employment with Thailand-based SCG Chemicals.

Ethane transport leader

The latest contract expands MOL’s VLEC fleet to 16 vessels, making it the largest in the world, according to the company.

“Since launching our ethane transport business in 2016 as the world’s first VLEC operator, MOL has steadily built a strong track record in liquefied ethane transport and established itself as a leader in VLEC management and operations,” the company said.

MOL has also highlighted India as a region of “remarkable economic development” and is actively expanding its business presence there.

“Through the expansion of its energy business, including this project, and the strengthening of its partnership with ONGC, MOL Group will continue to contribute to the transport and logistics infrastructure that supports the rapidly growing – and expected to further expand – demand for energy, including natural gas, ensuring a stable supply,” MOL concluded.