Larsen & Toubro (L&T) has made inroads in various segments of the construction industry, right from building hotels to railways and metros and from gold processing facilities to oil and gas projects.
01 August 2020
Larsen & Toubro (L&T), the $21-billion Indian technology conglomerate, has continued to secure several prestigious construction contracts across the GCC, further consolidating its reputation built over the past four decades.
The conglomerate has established a strong presence in the Middle East and in the construction, hydrocarbon, power transmission and distribution, heavy civil infrastructure, transport infrastructure and water and smart world communication sectors of North Africa.
L&T has recently won several projects in the region including a contract worth $509.1 million for freight facilities for Etihad Rail, the UAE’s national railway network. The Indian major was also among the contractors working with Saudi Aramco as part of the 34 contracts valued at $18 billion awarded for the oil giant’s Marjan and Berri oilfield increment programmes. Another major contract in Saudi Arabia came from Mansoura Massarrah Gold Mine and is worth $725 million.
The Mandarin Oriental Hotel, Muscat, Oman and the several replacement substations for the Kuwait National Petroleum Corporation’s (KNPC) Al Ahmadi oil refinery, are other prestigious projects that L&T has been involved with in the GCC region.
“Despite the threat posed by the pandemic, L&T has ensured that work has proceeded without significant disruption across all its projects by strictly following all the official directives, advisories, and strictures,” a spokesman for the company tells Gulf Construction.
L&T’s heavy engineering arm dispatched critical reactors, coke drums and sub-assemblies of nuclear fusion reactors for its global clients during the lockdown in India from the last week of March.
During this period, a final consignment of four (out of total package of 16) ARDS reactors for the refinery modernisation project for clean, environment-friendly fuels to Adnoc, Abu Dhabi, were delivered by the company. The final four coke drums, part of the package of critical hydrocracking reactors for Duqm Refinery in Oman were also delivered on time.
Meanwhile, the company has kept an eye on adding value to the countries it operates in.
For instance, as part of Saudi Vision 2030, Larsen & Toubro Saudi Arabia Power Transmission & Distribution (PT&D) inducted two batches of Saudi graduate engineer trainees in various facilities in Saudi Arabia.
“This Saudi GET Program initiative of LTSA-PT&D has been designed in deference to other important countrywide initiatives like Saudisation, aimed to provide more employment opportunities to nationals and integral to Saudi Vision 2030 and In-Kingdom Total Value Add Program (IKTVA), an initiative by Saudi Aramco to support increased levels of domestic value creation and thereby create quality jobs for Saudis,” the spokesman explains.
Freight facilities for Etihad Rail
This design-and-build contract for freight facilities in the Stage Two expansion phase of Etihad Rail is a breakthrough project for L&T, and is being executed as a joint venture with Power China. The scope of work involves the design, engineering, procurement, construction and commissioning of bulk material handling systems (rail loading and unloading systems) with associated civil and structural works, bulk material storage facilities, general cargo and container handling facilities with freight terminal management and control systems.
All freight stations will include railway siding and track works, apart from other infrastructure works such as bridges, buildings, roads and drains, and water and electricity utility systems.
Mandarin Oriental
The buildings and factories vertical of L&T Oman is currently executing the main works of The Mandarin Oriental, Muscat by Eagle Hills that involves the construction of a 150-key Mandarin Oriental Hotel and 156 units of branded residences, plus 1,622 sq m of retail areas, podium, and basement.
Mansourah Massarrah Gold project
Last year, the Metallurgical & Material Handling (MMH) Strategic Business Unit of L&T Construction was awarded a large order by Ma’aden Gold and Base Metal Company (MGBM) to set up the Mansourah Massarrah Gold project.
“Ma’aden is now an internationally recognised mining company with a global presence. This $725-million engineering, procurement and construction (EPC) order for the gold processing plant in Saudi Arabia, secured against stiff global competition, is the largest single EPC order for the metallurgical business in the international market,” says the spokesman.
Power Transmission & Distribution
L&T’s Power Transmission & Distribution business has completed the construction of several substations of various capacities in the GCC countries with many more in the pipeline. PT&D has qualified and executed gas-insulated substations (GIS) of up to 400 kV capacity, installed over 4,400 km of transmission lines and 3,000-plus km of cabling for 25 reputed customers across the region. Currently, PT&D is executing a host of engineering, procurement and construction (EPC)orders in Kuwait, Saudi Arabia, the UAE, Qatar and Oman and a clutch of projects in Africa, the spokesman says.
Water & Effluent Treatment
L&T, in joint venture with Besix, constructed the 375,000 cu per day day Jebel Ali sewage treatment plant (Phase Two), the biggest in the UAE, for the Dubai Municipality.
Among projects under way, L&T’s Water & Effluent Treatment (WET) business has been working on a prestigious design-and-build (D&B) order from the Public Works Authority (Ashghal), Qatar, to execute 30-million-litres-per-day industrial area sewage treatment works.
In Oman, WET has started the execution of a water infrastructure project to enhance the Al Dhakhlia Water Transmission System, Phase Two. The scope of work includes 173 km of pipelines for water transmission with associated civil works, 18 reinforced concrete (RCC) water storage reservoirs, five pumping stations with associated mechanical, electrical, control and instrumentation works.
Past projects
“We have a strong track record of executing prestigious and challenging mega projects successfully and delivering on time,” says D K Sen, Whole-time Director & Senior Executive Vice President (Development Projects), Larsen and Toubro.
L&T’s long list of noteworthy projects executed in the region include Salalah Airport, Mahalah Ghubbrat Al Tam Ismaiyah road, the design and construction of underpasses and flyovers along Darsait Al Wadi Al Kabir Expressway, all in Oman; the Riyadh Metro in Saudi Arabia; the Doha Metro and the Al Wakrah Road projects, both in Qatar; the Abu Dhabi Airport airside works and the Khalifa Port Interchange in Abu Dhabi, and middle bridges on the trunk of Palm Jumeirah Island in Dubai, all in the UAE.
The Mafraq to Al Ghweifat Highway –Section 4A, three roads and interchange projects for the Expo 2020 in the UAE, the Batinah Expressway Package 4, Al Sharqiyah Expressway Section Two, Package One in Oman, and the Doha Industrial Area Package Six (a joint venture with a local company) in Qatar are some other major projects.
Meanwhile, key board level appointments have been made by L&T, reflecting its resolve to chart an aggressive future in its businesses. The company’s board of directors has decided to induct Subramanian Sarma (a non-executive director in the board) as an executive director and also elevate SV Desai and T Madhava Das to the board.
Sarma is at present CEO and MD of L&T Hydrocarbon Engineering, a wholly-owned subsidiary of L&T. In his new role, Sarma will be designated Whole-Time Director and Senior Executive Vice President (Energy). A graduate in chemical engineering, Sarma completed his Masters from IIT Bombay. A seasoned professional, he has over 37 years of experience, with 28 years being in the Middle East. During his career span, Sarma has handled the complete oil and gas value chain including executive management, business development, project management and process engineering.