L&T announced on Thursday that its construction arm has received an order worth up to Rs 2,500 crore from Oilfields Supply Company Saudi to design and develop an oil and gas supply base. The company did not provide contract values but said the orders fall into the “important” category, which ranges between Rs 1,000 crore and Rs 2,500 crore according to its contract classification.
“The Larsen & Toubro Construction buildings and factories business has secured a significant contract from Oilfields Supply Company Saudi, owned by Dubai-based Oilfields Supply Center Ltd, to design and develop one of the World’s largest oil and gas supply bases at King Salman Energy Park, Dammam, Kingdom of Saudi Arabia,” L&T said in a regulatory filing.
The project will require the construction of various-sized manufacturing facilities, an administration building, ancillary buildings, related services, and storage yards, as well as civil, structural, and architectural works, according to L&T. It is estimated that the project will take 30 months to complete.
M V Satish, L&T’s full-time director and senior executive vice president (buildings), stated that this project will act as a business incubator for the oil and gas industry in the Kingdom of Saudi Arabia, assisting in the acceleration of industrial growth in the energy sector. “It also has strategic significance for L&T, indicating our future growth in such a potentially rich market as the Kingdom of Saudi Arabia,” he added.
The renewables arm of Larsen & Toubro’s power transmission and Distribution Company has obtained permission to begin construction on the 300MW Jeddah Solar PV Power Plant.
Following the signing of the power purchase agreement and, as a result, the notice to Larsen & Toubro to begin construction, the project has now reached financial closure.
The project is situated 50 kilometers south of Jeddah in Third Jeddah Industrial City. Bifacial modules, single axial trackers, string inverters, and module cleaning robots are among the technologies used in this large utility-scale power plant. L&T is an Indian conglomerate with over $21 billion in revenue that is involved in engineering, procurement, and construction programs, manufacturing, defense, and services.