ONGC's Strategic Ethane Import Plan to Offset LNG Composition Shift

ONGC plans to start importing ethane in mid-2028 due to changes in LNG composition from Qatar. With a new contract for lean gas supply, ONGC aims to source 800,000 tonnes of ethane annually to support its petrochemical subsidiary. The move involves a joint venture to build and operate ethane carriers.

State-owned Oil and Natural Gas Corporation (ONGC) is set to embark on importing ethane starting mid-2028. This decision comes as a response to the changing composition of liquefied natural gas (LNG) supplied by Qatar, which will focus on providing lean gas stripped of ethane and propane.

Under the current agreement, QatarEnergy supplies ONGC with LNG that includes methane, ethane, and propane. The contract, however, terminates in 2028, leading to the need for ONGC to procure ethane separately. The company intends to secure 800,000 tonnes of ethane annually from May 2028 to sustain its petrochemical operations.

To facilitate this import, ONGC seeks joint venture partnerships to construct Very Large Ethane Carriers (VLECs) for transportation. The Expression of Interest requires partners with experience in vessel management, and interested parties must submit proposals by March 27. The initiative underscores ONGC's adaptation to evolving energy dynamics.

(With inputs from agencies.)