Larsen & Toubro (L&T) has secured a significant ultra-mega contract for gas compression facilities in West Asia, as reported by The Economic Times. The contract was awarded to L&T Energy Hydrocarbon Onshore (LTEH Onshore), a subsidiary of L&T, and carries a project value above ₹15,000 crore according to the company's project classification. The project involves the engineering, procurement and construction (EPC) of gas compression plants, including gas inlet facilities, gas compression systems, condensate and produced water handling systems, propane refrigeration systems and all associated utilities.
The comprehensive project involves the engineering, procurement and construction (EPC) of gas compression plants, including gas inlet facilities, gas compression systems, condensate and produced water handling systems, propane refrigeration systems and all associated utilities. According to The Economic Times, the facilities will be developed for new onshore installations specifically designed to process sour gas in compliance with applicable client standards, codes and project requirements. The project is expected to add significant gas compression capacity and utility infrastructure to the region's oil and gas infrastructure market.
To meet the power requirements of the gas compression plants, L&T's Power Transmission & Distribution business will execute two 230 kV extra-high-voltage substations, as reported by The Economic Times. This power infrastructure component is integral to the overall project scope and will support the operational requirements of the gas compression facilities. The substations are designed to provide reliable power supply for the extensive gas compression operations.
E S Sathyanarayanan, Senior Vice President and Head of L&T Energy Hydrocarbon Onshore, stated that the contract marks the beginning of a strategically important project that will add significant gas compression capacity and utility infrastructure. The project draws on L&T's extensive experience in executing large and complex hydrocarbon facilities and reinforces the company's capability to deliver integrated solutions for challenging sour gas applications. LTEH Onshore is one of India's leading EPC companies, providing Lump Sum Turnkey solutions across the upstream, midstream and downstream hydrocarbon sectors, having executed projects across multiple geographies including refinery expansions, petrochemical complexes, gas processing plants, fertiliser plants, LNG terminals and cross-country pipelines.
Despite securing this significant ultra-mega contract, L&T's shares remained nearly unchanged, closing at ₹4,085.3 apiece on the BSE on Monday, according to The Economic Times. The stock shed 0.08% during the trading session. Among the 32 analysts covering the company, 81.3% hold a 'buy' rating, with 5 analysts maintaining 'hold' ratings and only one analyst recommending a'sell'. JP Morgan holds the highest target price of ₹5,060 per share among analysts covering the stock. The company's stock has risen 8% over the month but lost more than 1% on a year-to-date basis.
