Daily Newsletter

02 November 2023

Daily Newsletter

02 November 2023

L&T secures new onshore project in Middle East

LTEH will be responsible for the EPC of a gas processing plant and integrating it with others in the region.

November 01 2023

India-based infrastructure company Larsen & Toubro’s (L&T) Energy Hydrocarbon business (LTEH) has obtained a letter of intent for an 'Ultra-Mega' onshore project from an unnamed major client in the Middle East.

The letter follows another Ultra-Mega project that the company won for a gas compression facility, also located in the Middle East.

L&T chair and managing director SN Subrahmanyan said: “This is a huge order that will not only strengthen our balance sheet but also provide impetus to our demonstrated credentials in the Hydrocarbon EPC [engineering, procurement, and construction] space. We are proud of our LTEH team.”

The scope of the project includes the EPC of a gas processing plant within new onshore facilities and the integration of this plant with others in the area.

The plant will feature inlet separation amenities, a booster compression system, a dehydration unit, an amine gas recovery unit, a natural gas liquids recovery unit, a mercury removal unit, and a sales gas compression system.

LTEH senior executive vice-president and director Subramanian Sarma said: “In the ever-evolving landscape of the oil and gas sector, this twin win for LTEH demonstrates our execution and delivering capabilities of ultra-mega projects.

"It drives us to constantly strive for excellence, to innovate, and to deliver solutions that exceed customer expectations.”

The company did not disclose the specific value of this project, but classifies orders as Ultra-Mega if they are worth above Rs150bn.

South-East Asia Construction Market Dynamics

Per GlobalData analysis, the South-East Asia construction industry in 2023 is dominated by Indonesia, though the country will see a slowdown compared to 2022 due to elevated building material prices, weak commercial property demand, high interest rates and a softening of external demand. The construction industry in the Philippines is estimated to register a AAGR of 7.2% between 2024 and 2027, supported by the government’s focus on the development of the country’s rail and road transport and energy infrastructure.

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