MOL gives impetus to energy transportation in India by inking pacts with GAIL, ONGC for LNG carrier, VLECs

Mitsui O.S.K. Lines, Ltd. (MOL) has inked a long-term charter agreement with GAIL for one LNG carrier and another long-term charter agreement with ONGC for two very large ethane carriers (VLECs) during India Energy Week 2026 in Goa. For the LNG carrier named “GAIL BHUWAN,” the signing ceremony was held on 27th January 2026. The agreement was signed between GAIL and LNG Japonica Shipping Corporation Limited, a Joint Venture between MOL (74%) and GAIL (26%). 

MOL and GAIL share a long-standing business partnership, and this collaboration further strengthens cooperation in LNG shipping and energy logistics. Relying on MOL’s proven track record in providing reliable transportation services, including its high standards of safety, quality and strong partnership, the agreement marks an important milestone under the ‘Maritime Amrit Kaal Vision 2047’, reinforcing India’s maritime and energy supply chain capabilities. Both MOL and GAIL have set the ambitious net zero emission targets, and this agreement contributes to the realisation of a decarbonised world. 

MOL has positioned regional strategy as one of the key pillars of its group management plan “BLUE ACTION 2035,” identifying Asia as a region expected to deliver strong economic growth. In India in particular, where economic development has been remarkable, MOL has long been actively expanding its business presence. Through the expansion of its energy business, including this project, and further strengthening of its partnership with GAIL, MOL Group will continue to play a part in the transport and logistics infrastructure that supports rapidly growing demand for energy, including natural gas, and contribute to a stable energy supply. 

India joint ventures driving energy transportation

MOL has established two other joint ventures - Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited - with India’s state-owned Oil and Natural Gas Corporation Limited (ONGC). The two joint ventures and ONGC signed a long-term (15-year) charter contract for two newbuilding Very Large Ethane Carriers (VLECs) during India Energy Week 2026. 

The state-of-the-art 100,000-cubic-meter VLECs will be equipped with dual-fuel main engines capable of burning ethane as fuel. They are scheduled for construction at Samsung Heavy Industries Co., Ltd and delivery is slated for late 2028 or later, after which the vessels will be engaged in transporting liquefied ethane from the US to India. This contract expands MOL’s VLEC fleet to 16 vessels, the largest in the world.  

Since launching its 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. Its experience with liquefied gas carriers, including VLECs, along with its operational expertise within the Indian Special Economic Zone, where these joint ventures are based, was recognised and led to the signing of this long-term charter agreement. 

MOL Group is advancing a transformation of its business portfolio by increasing the share of stable earnings businesses to secure profitability even during shipping downturns. Expanding its LNG and VLEC fleets—the world’s largest—as well as its long-term time charter contracts, is part of this initiative, highlighted a release.

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