Larsen & Toubro will implement new land-based facilities compression and processing of sour gas for a client of Middle East.
Larsen & Toubro (L&T) obtained a contract valued at more than 15 billion rupees to develop a gas compression project and associated infrastructure in the Middle East. The Indian company considers these types of orders to be ultra-mega orders due to their high value.
The project was awarded through a letter issued during fiscal year 2026 and will be executed by L&T Energy Hydrocarbon Onshore (LTEH Onshore) under an engineering, procurement, and construction (EPC) scheme. The company did not disclose the exact value of the contract or reveal the identity of the Middle Eastern client.
L&T will build new facilities to process sour gas
Specifically, the scope includes the development of onshore facilities for processing sour gas, the infrastructure will incorporate various systems necessary to receive, compress, and handle the fluids involved in the operations.
Key components include gas intake facilities and compression systems. Equipment for handling condensate and produced water will also be installed, along with propane refrigeration systems and auxiliary services.
In this way, the contract concentrates several critical stages within the same EPC execution, LTEH Onshore will assume the engineering, equipment acquisition and construction of the facilities planned for the project.
Two 230 kV substations will supply power to the project
On the other hand, compression plants will need high-capacity electrical infrastructure to maintain their operations. To meet this demand, the business of L&T Power Transmission and Distribution it will build two extra-high-voltage substations. Each facility will operate at 230 kV and will form part of the auxiliary infrastructure associated with the gas project.
So, L&T it will combine the capabilities of two of its business areas, while LTEH Onshore will be in charge of the hydrocarbon facilities, the electrical division will run the substations needed to power the plants.
The contract strengthens L&T’s EPC activity in hydrocarbons
Furthermore, the project expands the portfolio of work of L&T Energy Hydrocarbon Onshore in complex oil and gas facilities. The division develops EPC solutions for operations related to the upstream, midstream, and downstream segments.
His experience includes refinery expansion projects, petrochemical complexes, gas processing plants fertilizer facilities, LNG terminals and long-distance pipelines.
E. S. Sathyanarayanan, senior vice president and director of L&T Energy Hydrocarbon Onshore, noted that the contract will allow for the incorporation of significant gas compression capacity and ancillary services infrastructure.
The executive also highlighted the company’s experience in complex hydrocarbon facilities and integrated solutions for sour gas applications.
An order classified by L&T as ultra-mega
Due to its value, L&T included the contract within its category ultra-mega, used by the company for orders exceeding 15 billion rupees.
The project places gas compression as a central element of the new onshore infrastructure and combines processing facilities with extra-high voltage electrical systems.
In addition to increasing planned compression capacity, the award adds a new large-scale project to L&T’s operations in the Middle East energy market.
Source: The Economic Times
Photo: Shutterstock
