Larsen & Toubro (L&T), India’s premier infrastructure company, has clinched contracts worth over $4 billion from Saudi Aramco to expand its gas projects. This substantial achievement reported meed.com, has resulted in a 2.5 per cent rise in L&T’s shares during morning trading.
The $4 billion ( ₹35,000 crore) order from the state-owned petroleum and natural gas giant Saudi Aramco encompasses the development of gas compression systems. This is part of Saudi Aramco’s ambitious $110 billion Jafurah gas project in the eastern province.
L&T’s stock price was trading in the green, up 2.61 per cent at ₹3619.70, on July 2, at 2:50 pm, on the BSE.
According to the Middle East business publication meed.com, these orders are a segment of Saudi Aramco’s $25 billion worth of engineering, procurement, and construction (EPC) contracts announced on June 30. These contracts target two of Saudi Aramco’s gas expansion programs.
Although L&T has not yet released an official statement regarding this development, it is reported that L&T has secured two key packages from Saudi Aramco. Package 1, valued at $2.9 billion, involves the construction of a gas processing plant and main process units. Package 2, a $1 billion contract, pertains to gas compression units. Both packages will be executed by L&T’s Energy Hydrocarbon division.
The detailed EPC packages for the second expansion phase of the Jafurah project reveal additional winners, including Hyundai Engineering from South Korea, which received a $2.4 billion order, and Spain’s Tecnicas Reunidas, which received contracts totalling $3.2 billion, according to the report.
Last September, L&T had previously bagged two EPC orders worth nearly $4 billion from Saudi Aramco, contributing to the ongoing expansion of the Jafurah gas project. The Jafurah basin is the largest liquid-rich shale gas field in the Middle East, with an estimated 200 trillion cubic feet of gas reserves spread over 17,000 square kilometres.
Additionally, the L&T Energy Hydrocarbon (LTEH) vertical of Larsen & Toubro (L&T) has secured an order from the Oil & Natural Gas Corporation (ONGC) for the eighth phase of Pipeline Replacement Project (PRPVIII Group B) off India’s west coast, as an exchanged filing.
The order involved engineering, procurement, construction, installation & commissioning (EPCIC) of 129-km subsea pipelines and associated modification works across India’s west coast offshore fields of the ONGC, as per the filing.
Commenting on the order win, Subramanian Sarma, Whole-time Director & President – Energy, L&T, said, “This order reflects ONGC’s continued confidence in L&T, and this emanates from our track record of successfully delivering complex offshore projects. This order further demonstrates L&T’s unwavering commitment to India’s energy requirement.”
