Saudi Aramco’s headquarters in Dhahran, Saudi Arabia

Saudi Aramco’s headquarters in Dhahran, Saudi Arabia

Aramco deal goes to L&T

01 July 2013

A JOINT venture company of Mumbai-based Larsen & Toubro (L&T) – Larsen Toubro Arabia LLC – has achieved a major breakthrough in Saudi Arabia by securing a large EPC contract from the Saudi Arabian Oil Company (Saudi Aramco).

Larsen Toubro Arabia is among multiple joint ventures of L&T in the high-growth markets of GCC countries. The contract is for setting up gas processing facilities for the Midyan Gas Fields with a capacity to treat 75 million metric standard cu ft per day (mmscfd) of gas and 4,500 bpd of condensate, and the laying of over 90 km of gas and condensate product pipelines.

The project is scheduled to be completed in 37 months.

“The purpose of the facilities is to efficiently meet the kingdom’s energy demands in the west coast region. The prestigious contract is part of L&T’s strategic growth plan in the international hydrocarbon sector,” an L&T statement said. “L&T has been making significant strides in engineering and construction in the international market through its well-established capabilities in the execution and delivery of turnkey solutions and services. As with all other projects being executed by the L&T Group, the Midyan project will maintain standards of health, safety and environment, engineering, procurement, project and construction management, quality and delivery that conform to Saudi Aramco

The concept for the Midyan Gas Processing Facilities project is to collect gas and process it in a modular gas plant, and export treated gas to a proposed power plant in a location approximately 90 km from Midyan. The scope of the contract includes project management, detailed engineering, procurement, supply, fabrication, manufacturing, inspection, transportation, construction, installation, testing, mechanical completion, pre-commissioning and commissioning assistance including performance testing.

In the past, L&T worked at establishing onshore gas processing complexes for Reliance Industries Limited at Kakinada and Cairn Energy at Barmer and gas treatment projects at Uran and Hazira for ONGC – all in India.

Currently, L&T is executing two projects for Petroleum Development Oman, namely the Lekhwair Gas Field Development Project and the Saih Rawl Depletion Project and an export gas compression facility upgrade for Dolphin Energy Limited, Qatar.

“With significant growth potential in the natural gas market in the kingdom, this order is strategic from the point of view of L&T’s capability to execute such projects in an extremely competitive environment,” the company said.

Larsen & Toubro is a $14 billion technology, engineering, construction, manufacturing and financial services conglomerate with global operations. It is ranked 4th in the global list of green companies in the industrial sector by Newsweek magazine, and the 9th most innovative company by Forbes International. L&T is one of the largest and most respected companies in India’s private sector.

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