Larsen & Toubro (L&T) on Thursday said its hydrocarbon business has won an order for a major onshore gas pipeline project from a client in West Asia. The company categorised the order as ‘major’, implying a value of between Rs 5,000 crore and Rs 10,000 crore. L&T does not disclose the exact value of its order wins.
L&T stated the scope of work comprises engineering, procurement, and construction of two new 56″ pipelines, along with associated scraper receivers and launchers and main line isolation valve (MLIV) stations, running parallel to the existing pipeline corridor.
“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,” said Subramanian Sarma, whole-time director and senior executive vice president (Energy) at L&T.
The order win announcement comes in the backdrop of West Asia, particularly Saudi Aramco, revisiting its capital expenditure plans. As of December 2023, L&T’s outstanding order book was at Rs 4.69 trillion, with analysts estimating that 30 per cent of it was 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.”
