L&T Wins Record ₹15,000 Crore Offshore Contract from QatarEnergy LNG

Larsen & Toubro Lands Its Largest-Ever Hydrocarbon Order

Larsen & Toubro (L&T) has achieved a significant milestone by securing its biggest offshore hydrocarbon contract worth over ₹15,000 crore from QatarEnergy LNG. The project, awarded under the North Field Production Sustainability Offshore Compression Project (NFPS COMP 4), marks a key expansion for L&T in the global energy sector.

The contract was awarded to L&T Hydrocarbon Business (L&T Energy Hydrocarbon – LTEH), reinforcing the company’s position as a leading engineering, procurement, and construction (EPC) player in the global oil and gas industry.

Strategic Importance of the Qatar Contract

Strengthening L&T’s Global Energy Portfolio

S N Subrahmanyan, Chairman & Managing Director of L&T, emphasized the strategic importance of the deal, stating:
“This prestigious project strengthens our global energy portfolio while supporting Qatar’s energy security objectives. I thank QatarEnergy LNG for placing their trust in L&T to deliver this complex and strategically important project.”

The contract aligns with Qatar’s long-term energy security goals, expanding offshore natural gas infrastructure to enhance LNG production capacity. The NFPS COMP 4 project is a vital part of QatarEnergy’s plans to expand the North Field, the world’s largest natural gas reservoir.

Project Scope and Deliverables

The project includes:

• Engineering, procurement, fabrication, installation, and commissioning of two massive offshore compression complexes

• Large offshore platforms integrated with compression and power generation facilities

• Living quarters, flare platforms, interconnected bridges, and associated structures

• Offshore installations situated 80 km off the northeast coast of Qatar

This contract significantly bolsters L&T’s expertise in executing large-scale offshore hydrocarbon projects, strengthening its presence in the Middle East.

Stock Market Reaction: L&T Shares Trade Higher

L&T Stock Gains Amid Positive Sentiment

Following the announcement, L&T’s stock gained 0.78% to an intraday high of ₹3,496.8 per share on the NSE. However, some profit booking trimmed the gains, with shares settling at ₹3,479.65, up 0.29% in afternoon trade.

Investor Optimism Over Strong Order Pipeline

• L&T has been witnessing robust order inflows across multiple business segments, including infrastructure, power, defense, and hydrocarbons.

• The QatarEnergy deal adds to its growing order book, reinforcing investor confidence in the company’s revenue growth trajectory.

• Market analysts believe that L&T’s focus on executing large-scale international projects will drive long-term profitability.

Qatar’s North Field Expansion: A Global LNG Powerhouse

World’s Largest Natural Gas Expansion Project

Qatar’s North Field is the largest natural gas field in the world, and the NFPS COMP 4 project plays a crucial role in enhancing production output.

• QatarEnergy is aggressively expanding its LNG production capacity, targeting a significant increase by 2027.

• The expansion project reinforces Qatar’s position as a global LNG leader, catering to rising global demand for cleaner energy sources.

L&T’s Role in Global LNG Development

• L&T’s successful execution of this offshore compression project will further cement its reputation as a top-tier EPC player in the oil & gas sector.

• The company’s expertise in handling complex offshore installations makes it a preferred partner for global hydrocarbon projects.

L&T’s Growing International Presence in Hydrocarbon EPC

Expanding Beyond India: Major Offshore EPC Contracts

L&T has been aggressively expanding its international hydrocarbon EPC portfolio, winning major projects in the Middle East, Africa, and Southeast Asia.

• The company has executed offshore projects for clients in Saudi Arabia, UAE, and Oman, further strengthening its regional footprint.

• The QatarEnergy contract adds to L&T’s growing list of high-value hydrocarbon projects, positioning it as a key player in the global energy sector.

Robust Order Book Supports Growth Outlook

• With a strong order book exceeding ₹4 lakh crore, L&T is expected to maintain double-digit revenue growth in the coming years.

• The hydrocarbon segment remains a key revenue driver, contributing significantly to L&T’s engineering and construction business.

• Analysts project that L&T’s international order pipeline will continue expanding, supported by strong demand for EPC services in oil & gas infrastructure.

L&T’s Strategic Vision and Future Prospects

Strengthening Leadership in the Hydrocarbon Sector

• L&T has consistently been securing high-value contracts in the oil & gas industry, driven by its technological expertise and execution capabilities.

• The company’s focus on large-scale offshore projects aligns with its long-term growth strategy in international markets.

Positive Growth Trajectory for L&T Energy Hydrocarbon

• The QatarEnergy LNG contract reaffirms L&T Energy Hydrocarbon’s leadership in offshore oil & gas infrastructure development.

• The company is expected to secure more international contracts, further boosting its revenue and profitability in FY25 and beyond.