India's largest infrastructure company, L&T, has secured orders worth over $4 billion from Saudi Aramco to expand its gas projects.

India's largest infrastructure company, L&T, has secured orders worth over $4 billion from Saudi Aramco to expand its gas projects. The Rs 35,000 crore order includes significant work on gas compression systems and is part of a larger $25 billion engineering, procurement, and construction (EPC) contract. This development has positively impacted L&T shares, which rose over 2.5% in morning trade on July 2.

Key Points:

According to MEED, L&T won two packages from Saudi Aramco for the Jafurah gas project expansion.

Package 1: $2.9 billion for a gas processing plant and main process units.

Package 3: $1 billion for gas compression units.

Both orders were awarded to L&T's energy hydrocarbon division.

Other winners include Hyundai Engineering ($2.4 billion) and Tecnicas Reunidas ($3.2 billion).

In September, L&T previously secured nearly $4 billion in EPC orders from Saudi Aramco for Jafurah.

Jafurah basin holds the largest liquid-rich shale gas field in the Middle East, with estimated reserves of 200 trillion cubic feet of gas over 17,000 square kilometers.

Subramanian Sarma, Whole-time Director and President (Energy) at L&T, confirmed the receipt of these orders, noting that the recent event was a formal commemoration of previously announced awards. He expressed optimism about the strong pipeline of future prospects, anticipating further awards in the near future.

According to a report by Middle East business publication MEED, L&T has won two specific packages from Saudi Aramco as part of the Jafurah gas project expansion. Package 1, valued at $2.9 billion, is designated for a gas processing plant and main process units. Package 3, a $1 billion order, focuses on gas compression units. Both orders have been awarded to L&T's energy hydrocarbon division.

Other companies have also secured significant orders as part of the Jafurah expansion. Hyundai Engineering of South Korea received a $2.4 billion order, while Spain's Tecnicas Reunidas secured two orders totaling $3.2 billion. This extensive project is part of Saudi Aramco's ambitious plans to develop the Jafurah basin, which holds the largest liquid-rich shale gas field in the Middle East. The basin is estimated to contain 200 trillion cubic feet of gas reserves, spread over 17,000 square kilometers.

In September last year, L&T had previously bagged two EPC orders worth nearly $4 billion from Saudi Aramco, underscoring the company's significant role in the expansion of the Jafurah gas project. The latest orders further solidify L&T's position as a key player in the region's energy sector.