Indian construction and engineering multinational Larsen & Toubro (L&T) said its hydrocarbon business, L&T Energy Hydrocarbon, has secured a letter of intent for a 'mega' onshore project in the Middle East.

The work scope involves engineering, procurement and construction of gas compression plants consisting of gas inlet facilities, gas compression system, produced water handling, propane refrigeration system, condensate transfer and utilities for gas compression facilities in new onshore facilities and its integration with existing gas compression plants, the company said in a statement to the Bombay Stock Exchange (BSE) last week.

In addition, the power transmission and distribution arm of L&T Construction will set up three 230 kV extra high voltage substations to provide power to the gas compression plants.

The statement didn’t identify the client or the project but local news reports by Business Standard newspaper and business news broadcaster CNBC TV18 last month suggested that company has been awarded a mega contract by Saudi Aramco for the Jafurah unconventional gas development project.

While L&T doesn’t disclose specific contract value, the statement filed with BSE categorised the award as “mega,” exceeding 70 billion Indian rupees (more than $845 million).

(1 US Dollar = 83.28 Indian rupees)

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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