L&T shares rise on report of $4 billion Saudi Aramco order for gas projects
L&T shares rise on report of $4 billion Saudi Aramco order for gas projects
India's largest infrastructure company L&T has bagged orders worth over $4 billion from Saudi Aramco for expansion of its gas projects, sending shares higher by over 2.5 percent in morning trade on July 2.
The Rs 35,000 crore order from the state-owned petroleum and natural gas company is reported to be for Aramco's gas compression systems. Saudi Aramco has planned a $110-billion Jafurah gas project in the eastern province.
The L&T order is part of Saudi Aramco's $25 billion worth of contracts for engineering, procurement and construction (EPC) related works, issued on June 30 for two of its gas expansion programmes, reported Middle East business publication meed.com.
L&T is yet to officially comment on the news report.
Moneycontrol is yet to independently verify the development, and this story will be updated once an official communication from L&T is received. According to the MEED report, L&T has won two packages from Saudi Aramco.
Package 1 is for gas processing plant and main process units, order worth $2.9 billion, while Package 3 is a billion dollar order for gas compression units. Both these orders have been awarded to Larsen & Toubro's energy hydrocarbon division.
Details of the EPC packages of the Jafurah second expansion phase reported by MEED reveal other winners, including a $2.4 billion order to South Korea's Hyundai Engineering, and two orders totaling $3.2 billion to Spain's Tecnicas Reunidas.
In September last year, Larsen and Toubro has bagged two EPC orders worth nearly $4 billion from Saudi Aramco, as part of Saudi Aramco's expansion of Jafurah gas project.
Saudi Arabia’s Jafurah basin sits on the largest liquid-rich shale gas field in the Middle East, with the MEED report projecting an estimated 200 trillion cubic feet of gas reserves, spread over 17,000 square kilometres.