L&T secures $4 Billion Saudi Aramco gas project orders

2 Jul 2024 , 03:44 PM

India’s largest infrastructure company, L&T, secured orders worth over $4 billion from Saudi Aramco for expanding its gas projects, leading to a 2.5% rise in shares on July 2.

At the time of writing on July 2, 2024, at 3:28 pm shares of L&T are trading at ₹3621.90 which is a 2.70% gain from the previous close. The stock has gained a total of 47% in the last year, and a total of 2.8% since the beginning of the year.

The ₹35,000 crore order from Saudi Aramco is for gas compression systems related to Aramco’s $110-billion Jafurah gas project in the eastern province.

The L&T order is part of Saudi Aramco’s $25 billion contracts for engineering, procurement, and construction (EPC) works issued on June 30 for two gas expansion programs, according to Middle East business publication meed.com.

The MEED report indicates that L&T won two packages from Saudi Aramco: Package 1, worth $2.9 billion, for a gas processing plant and main process units, and Package 3, a billion-dollar order for gas compression units. Both packages are awarded to L&T’s energy hydrocarbon division.

Other winners of the Jafurah second expansion phase EPC packages, as reported by MEED, include Hyundai Engineering from South Korea with a $2.4 billion order and Spain’s Tecnicas Reunidas with two orders totaling $3.2 billion.

In September last year, L&T secured two EPC orders worth nearly $4 billion from Saudi Aramco as part of the Jafurah gas project expansion.

The Jafurah basin in Saudi Arabia sits on 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, according to the MEED report.