L&T Hydrocarbon Engineering Ltd (LTHE), a wholly-owned subsidiary of Larsen & Toubro, has secured an order each from GAIL India and Air Products Middle East Industrial Gases LLC of Saudi Arabia.
In the announcement made on Tuesday, Larsen & Toubro did not disclose the exact moneterary value of the upcoming scopes of work. However, it said the value of the two orders put together was in the range of INR10bn-INR25bn ($140m-$340m), which it termed as “significant”.
The order from GAIL India is for the state-owned company’s Mumbai-Nagpur pipeline under which LTHE will lay a section of steel gas pipeline and build terminals along with associated facilities. The pipeline project, due to be laid alongside the upcoming Mumbai-Nagpur super communication expressway in the western Maharashtra state, will have to be completed in 14 months.
Saudi Arabia construction
L&T Hydrocarbon’s other order is from Air Products Middle East Industrial Gases LLC for its industrial gas hub network project at Jubail in Saudi Arabia. Under the contract, LTHE will construct a steam methane reformer to produce hydrogen, an air separation unit to produce oxygen and nitrogen, and hydrogen pressure swing adsorption units.
The overall duration of the operation in the oil-rich kingdom of Saudi Arabia is 22 months.
Both the contracts were secured by LTHE’s construction services business which offers turnkey construction of refinery, petrochemical, chemical and fertiliser projects, and gas-gathering stations. The Larsen & Toubro subsidiary also specialises in oil and gas terminals and field development, including the building of storage tanks and underground cavern storage systems for liquefied petroleum gas, and cross-country hydrocarbon pipelines.
The two projects follow another lucrative win announced by LTHE on Monday (20 September) for a INR25bn ($340m) collaboration with joint venture company Petronet LNG.
Shares of Larsen & Toubro traded 0.1% lower at INR1,706 on the National Stock Exchange at mid-morning.