Shares of Larsen & Toubro (L&T) saw a rise on Tuesday following reports that India’s largest infrastructure company has secured substantial orders from global oil and gas giant Saudi Aramco
Significant Order Value
According to media publication Meed, Saudi Aramco has awarded orders worth over $4 billion (₹33,394 crore) to L&T for the expansion of its gas projects. These orders are linked to Aramco’s extensive $110 billion (₹9.18 lakh crore) Jafurah gas project in Saudi Arabia’s eastern province.
Scope of the Project
These orders are part of Aramco’s $25 billion (₹2.08 lakh crore) investment in engineering, procurement, and construction (EPC) contracts, announced on June 30, targeting two major gas expansion programs.
Details of the Contracts
L&T has reportedly secured two key packages from Aramco: one valued at $2.9 billion (₹24,210 crore) for a gas processing plant and main process units, and another worth $1 billion (₹8,348 crore) for gas compression units. These projects will be managed by L&T’s energy hydrocarbon division.
Other Contract Winners
Other notable contracts for the Jafurah expansion were awarded to South Korea’s Hyundai Engineering, which secured a $2.4 billion (₹20,038 crore) contract, and Spain’s Tecnicas Reunidas, which received two contracts totaling $3.2 billion (₹26,717 crore).
Historical Context
Last September, L&T had already secured EPC orders worth nearly $4 billion (₹33,394 crore) from Saudi Aramco as part of the Jafurah gas project expansion.
Market Reaction
In response to the news, L&T’s share price increased by 2.51% to ₹3,615.05 in afternoon trading on Tuesday. Despite this rise, the stock has only seen a modest increase of 2.54% so far this year.
(Note: This article is for informational purposes only and does not provide investment advice. With inputs from agency reports.)
Share your news, articles, deals, columns, or press releases with us! Click the link to submit and join our platform today.
