A consortium led by Larsen & Toubro (L&T), the largest engineering and construction firm in India, has secured a US$ 1.6 billion gas contract off the coast of Saudi Arabia.
The Mumbai-based firm’s hydrocarbon unit tied up with the group Emas Chiyoda to deliver the expansion of the second phase of Hasbah offshore gas field, for oil giant Saudi Aramco.
The project is expected to be completed by 2020, when it will supply 2.5 billion standard cubic feet of gas per day.
L&T’s share of the contract is reported to be in the region of 60%, representing a significant win for the company, which has seen a slowing of demand from the Gulf region – a region that currently accounts for around a fifth of L&T’s total revenue.
The new contract is seen as a sign that demand is increasing in the Middle East market, and L&T will hope to be in the running for further significant projects from Saudi Aramco – especially given this single hydrocarbon order amounts to around 5.2% of the company’s target figure for the year.
L&T will report its April-June quarterly earnings in around a week’s time.