L&T bags over Rs 15,000-crore 'mega' gas compression project in Middle East

Engineering and construction major Larsen & Toubro (L&T) has secured an "ultra-mega" gas compression project worth more than Rs 15,000 crore in the Middle East, further strengthening the company's order book in the region. L&T Energy Hydrocarbon Onshore (LTEH Onshore), the company's engineering, procurement and construction arm for onshore hydrocarbon projects, has signed the contract for the gas compression facilities against a letter of award received during FY26.

The company has not disclosed the identity of the client or the precise value of the contract. Under L&T's internal classification, however, projects valued above Rs 15,000 crore are categorised as "ultra-mega" orders. The latest contract adds to a series of sizeable overseas orders secured by the Indian engineering conglomerate and highlights the Middle East's growing importance to its international business.

Project covers sour-gas facilities

The scope of the contract includes engineering, procurement and construction of gas compression plants and the infrastructure required to support their operations.

The project will include gas inlet facilities, compression systems, facilities for handling condensate and produced water, propane refrigeration systems and associated utilities.

The installations will be developed as new onshore facilities designed to process sour gas while meeting the client's technical standards, codes and project specifications.

Sour gas typically requires specialised processing because of the presence of compounds such as hydrogen sulphide, making the engineering and safety requirements of such facilities more demanding than conventional gas-processing projects.

L&T said its experience in executing large and complex hydrocarbon projects would support the delivery of the new facilities.

E S Sathyanarayanan, Senior Vice President and Head of L&T Energy Hydrocarbon Onshore, described the contract as the beginning of a strategically important project that would add substantial gas compression capacity and utility infrastructure.

Power arm joins project

L&T's Power Transmission & Distribution business will also participate in the project by constructing two 230-kV extra-high-voltage substations.

The substations will provide the power infrastructure required for the gas compression plants, giving L&T responsibility for a broader portion of the project's supporting systems.

The involvement of different L&T businesses reflects the group's ability to provide integrated engineering and infrastructure solutions for large energy projects rather than restricting its role to individual components.

Gas compression is an essential part of hydrocarbon infrastructure, helping maintain the pressure required to transport and process natural gas efficiently. Large compression facilities are particularly important as producing fields mature or as operators seek to increase processing and transportation capacity.

Middle East order book expands

The latest win follows other major contracts secured by L&T in the Middle East. Its offshore hydrocarbon business had earlier bagged another ultra-mega order, also valued above Rs 15,000 crore, for the development of multiple offshore facilities for a major client in the region.

L&T has also expanded its presence in Middle Eastern transport infrastructure. In partnership with Japan's Mitsubishi Heavy Industries, the company recently secured a project to design and build an Automated People Mover system for the first phase of Dubai's Al Maktoum International Airport. That order was classified in a lower value band of up to Rs 5,000 crore.

The latest gas contract reinforces the Middle East's position as one of L&T's most significant overseas markets, particularly for its hydrocarbon and infrastructure businesses.

Energy-producing countries across the region continue to invest heavily in gas production, processing, transmission and associated infrastructure, creating opportunities for engineering and construction companies with experience in delivering technically complex projects.

For L&T, the order also strengthens an international project pipeline that has become an increasingly important contributor to the group's overall business, with large energy and infrastructure contracts helping diversify its order book beyond the domestic market.