Korea’s Big Three shipbuilders — HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean — are set to compete for an order of three Very Large Ethane Carriers (VLECs) from India. The state-run Oil and Natural Gas Corporation (ONGC) has requested price quotations from the three Korean companies. With China, a dominant force in the VLEC market, excluded from the bidding process, Korean shipbuilders are poised to benefit.
According to TradeWinds, a Norwegian maritime news outlet, ONGC is planning to order three 100,000-cubic-meter-class VLECs and has sent bid invitations to Korea’s leading shipbuilders.
While the contract value has not been officially disclosed, industry estimates suggest each vessel could cost between $157 million and $168 million. ONGC aims to take delivery of the ships in the first half of 2028 to transport 800,000 tons of ethane annually from North America. The imported ethane will be used at a petrochemical complex currently under construction on India’s west coast, which is scheduled to begin operations in May 2028. Potential ship operators include Japan’s major shipping firms NYK and MOL, as well as Malaysia’s MISC Berhad.
Industry observers are closely watching the exclusion of Chinese shipbuilders from this tender. China’s Jiangnan Shipyard has been the top player in the VLEC market, having secured 44 out of 66 global orders, according to Clarkson Research. Despite this record, Chinese yards were left out of the Indian project. Analysts believe concerns about potential disruptions to U.S. ethane shipments, amid ongoing U.S.-China trade tensions, played a role. Long-standing border disputes and security concerns between India and China are also believed to have influenced ONGC’s decision. India has laid out a plan to become one of the world’s top 10 shipbuilding nations by 2030 and has deliberately excluded China as a key partner in this endeavor.
All three Korean shipbuilders are expected to participate in the bidding, setting the stage for a competitive race. Notably, HD Hyundai and Samsung Heavy Industries have proven experience building VLECs. Earlier this year, HD Hyundai secured an order for two VLECs worth approximately $345 million, while Samsung Heavy Industries received a similar order valued at about $351 million.
