India's L&T wins gas plant contract in Saudi Arabia

  • Share via facebook
  • Tweet this
  • Bookmark and Share

State-run Saudi Aramco has awarded India's Larsen & Toubro (L&T) a contract to build facilities including a gas processing plant for its Midyan gas field, state news agency SPA reported.

The world's top oil exporter is boosting its output of the natural gas needed to meet rapidly rising domestic power demand and supply raw materials to its strategically important petrochemical industry.

L&T will build a plant with a processing capacity of 75 million standard cubic feet per day (scfd) of non-associated gas and 4,500 barrels of condensate per day, the agency quoted Fahad al-Helal, executive director of project management at Aramco, as saying. The project is due to be online mid-2016, SPA added.

"The project will include building two pipelines of 98 km length to deliver sales gas and hydrocarbon liquids to a power plant near (the western city of) Duba," al-Helal said in a statement carried by SPA late on Monday.

This would enable efficient generation of power and avoid the burning of high-value diesel, it added.

SPA did not give a value for the contract but industry sources estimated it to be worth less than $300 million.

Midyan is one of the new gas fields in northwest Saudi Arabia to produce gas for power plants and potentially supply other industries in a region rich in iron ore deposits. It was discovered in the 1980s and has significant reserves.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
$40bn housing deal may signal Gulf investment push into Egypt

$40bn housing deal may signal Gulf investment push into Egypt

Egypt's economy is recovering only slowly from the turmoil that...

Opportunity knocks

Opportunity knocks

Government-backed projects for Saudi’s housing markets have been...

Splash the cash

Splash the cash

Orlando Crowcroft finds Qatar’s retail market is creating a lot...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams