Daily Newsletter

12 October 2023

Daily Newsletter

12 October 2023

L&T’s hydrocarbon unit secures onshore project in Middle East

L&T Construction’s power transmission and distribution unit will build three 230kV extra-high-voltage substations.

October 12 2023

India-based conglomerate Larsen & Toubro's (L&T) hydrocarbon unit L&T Energy Hydrocarbon has obtained a letter of intent for an onshore project in the Middle East.

The company has yet to disclose the details regarding the client of this project.

The project will see the engineering, procurement and construction of gas compression plants, which will include gas inlet facilities, produced water handling, propane refrigeration systems and condensate transfer.

The development also includes amenities for gas compression facilities in new onshore infrastructure, as well as its integration with current gas compression plants.

L&T chair and managing director SN Subrahmanyan said: “One doesn’t get to win such an order every day. This is something unique for L&T and a matter of pride for India - for we are a true Indian multinational. This also shows our capabilities to perform and deliver on time and the enormous trust that our client has in us to manage such complex projects.”

The power transmission and distribution unit of L&T Construction will build three 230kV extra-high-voltage substations to meet the power supply needs of the gas compression plants.

L&T did not disclose the specific value of these projects; however, it defined them as "mega". In its own classification, this means a value greater than Rs70bn [$840,916,600.00 - almost 850m USD].

L&T Energy director and senior executive vice-president Subramanian Sarma stated: “Earning such a large order from a reputed customer is a reflection of our consistent commitment to excellence, quality, and customer satisfaction. We are deeply honoured by customer faith and will continue to deliver execution par excellence.”

In August 2023, the power transmission and distribution segment of L&T won new construction orders in the Middle East.

North America Construction market dynamics

Per GlobalData estimates, the North America construction market size is expected to reach $1,772.5 billion in 2023. The increased spending from the public and private sectors in the regional energy and infrastructure domain is projected to aid the market growth. The energy and utilities construction sector is expected to depict a AAGR of 8.7% in real terms from 2024 to 2027, supported by investments in regional renewable energy and oil and gas projects.

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