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L&T’s shares gained after its Hydrocarbon Onshore arm won an order worth ₹15,000 crore to set up a Natural Gas Liquids plant and allied facilities in the Middle East.
The contract will be carried out in partnership with Greece-based CCC (Consolidated Contractors Group) S.A.L.
The deets: under the contract, L&T will look after engineering and procurement while CCC will look after other construction activities. The aim of the project is to process Rich Associated Gas (RAG) and produce products like lean sales gas, ethane, propane, butane etc.
Rich Associated Gas is a natural gas found with crude oil which has high proportions of heavier hydrocarbons. This helps in powering wind turbines and electric engines, serve as petrochemical feedstock, and produce Natural Gas Liquids.
Big picture: the move will help L&T cement itself as a reliable partner in the offshore oil & trading industry. India has a fairly low share in natural gas exports but with shifting geopolitical dynamics, several countries are looking for other options besides key suppliers like USA and Russia to depend on for this resource. The partnership will also help the Middle East become a reliable market for natural gas.
