Larsen & Toubro (L&T) announced that its hydrocarbon division secured a significant contract for an onshore gas pipeline project in West Asia. The company classified the contract as 'major,' indicating a value estimated to be between Rs 5,000 crore and Rs 10,000 crore. L&T typically refrains from disclosing the precise value of its awarded contracts.
L&T outlined that the project involves the engineering, procurement, and construction of two additional 56" pipelines alongside the installation of scraper receivers, launchers, and mainline isolation valve (MLIV) stations. These components will be constructed parallel to the existing pipeline corridor.
Subramanian Sarma, L&T's whole-time director and senior executive vice president (Energy), expressed enthusiasm, stating, "This is the largest cross-country pipeline EPC (Engineering, Procurement, and Construction) project awarded to us to date, and we are excited to bring our expertise to this strategic project”.
L&T's Hydrocarbon division, known as L&T Energy Hydrocarbon (LTEH), has recently attained a significant onshore gas pipeline project from a respected client in the Middle East. The announcement of this order win coincides with developments in West Asia, notably Saudi Aramco's review of its capital expenditure plans. As of December 2023, L&T's total order book stood at Rs 4.69 trillion, with analysts approximating that around 30 percent of it originated from Saudi Aramco.
On March 10, Saudi Aramco, as part of its full-year results commentary, said, “The (Ministry of Energy) directive to maintain Maximum Sustainable Capacity at 12 million barrels per day, mainly from the deferral of projects not yet commissioned and reductions in infill drilling, is expected to reduce capital investment by approximately $40 billion between 2024 and 2028".