L&T secures an ultra-mega contract worth over ₹15,000 crore in West Asia to develop sour-gas compression facilities and related infrastructure. Its power business will also build two 230 kV substations, strengthening its international energy portfolio.
Larsen & Toubro (L&T) has secured an ultra-mega contract worth more than ₹15,000 crore to develop gas compression facilities and associated infrastructure for a client in West Asia. The contract, awarded through a letter of award issued during FY26, strengthens L&T’s position in the region’s hydrocarbon engineering and infrastructure market.
The project will be executed by L&T Energy Hydrocarbon Onshore (LTEH Onshore) on an engineering, procurement and construction (EPC) basis. The scope includes the development of new onshore installations designed to process sour gas, a type of natural gas containing significant amounts of hydrogen sulphide and other impurities that require specialised processing infrastructure.
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Under the contract, L&T will build gas inlet facilities, compression systems, condensate and produced-water handling systems, propane refrigeration systems and other associated utilities. These facilities are expected to add substantial gas compression capacity and support the processing requirements of the new installations.
L&T’s Power Transmission & Distribution business will also participate in the project, executing two 230-kilovolt extra-high-voltage substations to meet the power requirements of the gas compression plants. The involvement of multiple L&T businesses enables the company to provide integrated hydrocarbon and power infrastructure under the same project.
The company has not disclosed the identity of the client or the exact value of the contract. L&T classifies orders exceeding ₹15,000 crore as “ultra-mega” projects. Industry reports have linked the project to Saudi Arabia’s Jafurah gas development, although L&T has not publicly confirmed the client or project association.
E S Sathyanarayanan, Senior Vice President and Head of LTEH Onshore, says the contract marks the beginning of a strategically important project that will add significant gas compression capacity and utility infrastructure. He also highlights L&T’s experience in executing complex hydrocarbon facilities and its capabilities in handling challenging sour-gas applications.
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The contract adds to L&T’s growing portfolio of large international energy projects and reinforces its presence in West Asia. The company’s ability to combine engineering, construction, hydrocarbon processing and power infrastructure capabilities positions it to undertake increasingly complex energy developments.
The project also comes as West Asian economies continue investing in natural gas production and processing infrastructure to meet rising energy demand and strengthen domestic gas supplies. For L&T, the latest order provides greater visibility for its international hydrocarbon business while expanding its participation in large-scale energy infrastructure projects.