Construction major Larsen & Toubro has bagged a major work order from Bharat Petroleum Corporation. In an exchange filing, the company said that the order, amounting to the range of Rs 5,000 crore to Rs 10,000 crore, pertains to engineering, procurement, construction and commissioning of polyethylene refining units.
Furthermore, the company stated that the project is an integral part of Bharat Petroleum’s Bina Petrochemicals & Refinery Expansion project, which aims to establish a petrochemical complex and increase refinery capacity from 7.8 MMTPA to ~11 MMTPA.
“This is a major order that will not only strengthen our balance sheet but also provide impetus to our demonstrated credentials in downstream hydrocarbon EPC space”, Subramanian Sarma, Deputy Managing Director & President of L&T, said in a statement.
Work order details
Larsen & Toubro added in the exchange disclosure that the order was received by L&T’s Hydrocarbon Onshore business vertical. It will set up two swing units comprising two trains of 575 KTPA.
These units will be engaged in the production of plastic raw materials from petrochemical feedstocks. Depending upon the demand, these production units can swing from production of Linear Low-Density Polyethylene (used in products such as carry bags, packaging, and wrappers) to High-Density Polyethylene (used in pipes, containers, heavy duty applications).
“In the ever-evolving landscape of the hydrocarbon and petrochemical sector, this win for L&T Onshore is a testament to the trust that customers repose in our execution and delivering capabilities. We are fully committed to delivering the project with high standards of HSE and quality”, E S Sathyanarayanan, Head of L&T Energy Hydrocarbon, said.
L&T share price
Larsen and Toubro’s share price was flat intra-day. In the last one month, L&T’s share price has increased by 1.6 per cent, while in the past six months, the construction major’s stock has gained about 13.7 per cent in market value