L&T Onshore, the hydrocarbon onshore business vertical of Larsen and Toubro, has secured a large business order from Petronet LNG for EPC and commissioning of liquefied Natural Gas (LNG). The order value ranges between Rs 2,500–5,000 crore.
L&T: Key project details
As per the company’s regulatory filing, Petronet LNG has awarded L&T the large business contract. Under the scope of work, the project comprises engineering, procurement, construction, and commissioning of a Liquefied Natural Gas (LNG)/ethane double-wall storage tank.
Further, L&T will undertake the handling of ethane and propane and dispatch facilities to support the propane dehydrogenation and polypropylene plant. The project will be delivered to Petronet LNG on a lump-sum turnkey basis.
The capacity of the ethane double-wall storage tank stands at 170,000 cubic metres, while the propane double-wall storage tank has a capacity of 140,000 cubic metres. The facility is located at the Dahej Petrochemical Complex in Gujarat.
Petronet LNG is a joint venture promoted by four PSUs which are, Oil & Natural Gas Corporation (ONGC), Indian Oil Corporation (IOCL), GAIL (India), and Bharat Petroleum Corporation (BPCL).
L&T: Project significance
The company, in its official statement, said that the project will help strengthen indigenous petrochemical manufacturing capacity.
“This project is part of India’s first petrochemical complex integrating cold energy utilisation from an LNG terminal and is expected to contribute towards bridging the domestic polypropylene demand–supply gap,” it added in its regulatory filing.
Commenting on the order win, Subramanian Sarma, Deputy Managing Director & President, L&T, said: “This order is a significant milestone for us as we contribute to India’s first integrated petrochemical complex leveraging LNG cold energy. It aligns with the nation’s Aatmanirbhar Bharat vision and strengthens indigenous petrochemical capacity.”
Also expressing his views on the order win, ES Sathyanarayanan, Senior Vice President & Head of L&T Onshore and Member of L&T’s Executive Committee, said: “Securing this prestigious order from Petronet LNG is a strong endorsement of our proven expertise in executing complex EPC projects. We are fully committed to completing this project safely, efficiently and within the agreed timelines, while upholding the highest levels of quality”.
L&T: Share price movement
Following the order win, the company’s share price rose by nearly 1%. Over the past one month, the company’s stock has declined by nearly 5%. However, over the past one year, the company’s stock has delivered a return of over 10%.