L&T Wins Rs 15,000 Crore Middle East Gas Plant Contract

Larsen & Toubro’s Hydrocarbon Onshore unit, in collaboration with Greece-based Consolidated Contractors Group S.A.L. (Offshore) (CCC), has secured what the company describes as an ‘ultra-mega order’ exceeding Rs 15,000 crore. The consortium arrangement positions L&T as the lead partner responsible for engineering and procurement, while CCC will handle construction activities for the comprehensive project. This partnership brings together L&T’s extensive engineering capabilities with CCC’s construction expertise in a strategic alignment for executing complex energy infrastructure projects.

The project scope involves designing, procuring, building, installing, and commissioning a Natural Gas Liquids (NGL) plant that will process Rich Associated Gas (RAG) to create multiple value-added products. These include lean sales gas, ethane, propane, butane, and hydrocarbon condensate, representing a comprehensive gas processing facility that maximizes resource utilization and economic value from the raw gas feedstock.

S.N. Subrahmanyan, Chairman & Managing Director of L&T, emphasized the strategic importance of the contract, stating: ‘The ultra-mega order reaffirms L&T’s position as a trusted partner in delivering mega energy infrastructure. It underscores our growing global footprint and ability to execute projects of high complexity in partnership with leading players like CCC.’ This statement highlights how the contract reinforces L&T’s reputation as a reliable global contractor capable of handling projects of immense scale and technical complexity.

Subramanian Sarma, L&T’s Deputy Managing Director and President, provided additional technical context, explaining that the project combines modern engineering, complicated brownfield integration, and long-term dependability measures to increase the company’s contribution to global energy security. This commentary underscores the project’s technical sophistication and its alignment with broader energy security objectives, positioning L&T as a key player in the global energy infrastructure landscape.

The contract represents a significant milestone for L&T Energy Hydrocarbon Onshore (LTEH Onshore), which has established itself as one of India’s largest EPC companies with a proven track record across refinery expansions, petrochemical complexes, gas processing facilities, fertilizer units, LNG terminals, and cross-country pipelines. This latest achievement further solidifies its position in the competitive global energy infrastructure market.

The market responded positively to the contract announcement, with L&T shares trading 1.5% higher during the trading session on October 9. By 2:40 pm, the stock was trading at Rs 3,763.90 on the National Stock Exchange (NSE), maintaining a 0.92% gain. This immediate positive market reaction reflects investor confidence in L&T’s ability to secure and execute large-scale international projects, particularly in the lucrative Middle Eastern energy market.

The substantial contract value of over Rs 15,000 crore represents a significant addition to L&T’s order book and provides revenue visibility for the coming years. For investors, such mega-contracts serve as validation of the company’s competitive positioning and execution capabilities in the global EPC space, particularly in the hydrocarbon sector where project complexity and scale create significant barriers to entry.

This contract win comes at a time when global energy infrastructure development is accelerating, particularly in gas processing and value-added products. L&T’s successful bid for this ultra-mega project demonstrates the company’s ability to compete effectively against international EPC contractors and positions it favorably for future similar opportunities in the region and beyond.