L&T sees post-war Middle East opportunities in alternative energy routes

Subramanian Sarma, Deputy Managing Director & President, L&T

• L&T eyes Mideast gains from energy diversification
• 95% of L&T's sites in the region operate without disruption
• Iran flagged as a major new market if sanctions are lifted

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Infrastructure giant Larsen and Toubro (L&T ) expects new opportunities to emerge in the middle east, driven by a push for faster project execution and diversification of energy supply routes, said Subramanian Sarma, Deputy Managing Director & President, L&T. Sarma noted that the company's clients in the region are increasingly accelerating ongoing projects to bring capacities online sooner, while also exploring the addition of new capacities.

"I can already see that customers feeling the urgency to push forward some of the ongoing jobs. They want to (close) with those capacities sooner and also want to add new capacities. There is already conversation around that. Maybe, there will be alternative routes for energy as well because every country will now feel overdependent on Straight of Hormuz (SoH) and they would like to maybe build some cross-country pipelines and have evacuation point in Oman, Red Sea, or even in Mediterranean," Sarma told journalists, in a select media roundtable, on March 21.

The middle east accounts for nearly 36% of L&T's total order book as of 2026. Its operations focus heavily on energy transition, power infrastructure, and hydrocarbon projects (offshore and onshore), particularly in Saudi Arabia, the UAE, Qatar, and Kuwait.

"I think the region will start evaluating alternative routes more strategically to move oil and gas, so it doesn’t end up in a situation of prolonged dependency again. Given that it will continue to be a major supplier, the focus will likely shift toward diversifying evacuation routes—something that could open up new opportunities," Sarma told journalists.

As and when the war gets concluded, the conglomerate expects announcement of new projects to move faster as countries look to pick "low-hanging fruits" to increase capacity quickly, Sarma flagged. The company expects significant traction in rebuilding activities once the conflict settles, noting that governments will likely require multiple contractors for these efforts.

Meanwhile, L&T said that its operations in the region are largely stable with 95% of its 100 sites functioning as "business as usual" without disruption. Only approximately 5% of sites—primarily those near military bases or involving specific water projects—have been suspended voluntarily or at the request of customers, Sarma said.

To resolve potential shortages in raw materials, the company is working with customers to use alternative ports in Oman and the Red Sea and shifting to road transportation.

Push to new energy demand

Amid the jump in crude prices, triggered by the war, there could be a renewed focus on energy transition, Sarma added.

"When the prices go up, people will see the need for diversifying the source of energy. I believe that energy transition will get back into momentum. It had slowed down because of whatever happened in US, but it will come back," he said.

L&T is a major player in the middle east's energy transition, securing multi-billion dollar contracts for solar power, green hydrogen, and carbon capture.

Separately, Sarma also flagged Iran as a massive "new market" where the opportunities for Indian companies would be "enormous", if the current sanctions are lifted.

The U.S. has not fully lifted sanctions on Iran. However, last week, the U.S. Treasury Department issued a temporary 30-day sanctions waiver for specific Iranian oil transactions, in an attempt to lower global energy prices, which have surged to over $110 per barrel during the ongoing U.S.-Israel military conflict with Iran.

"I think if the sanctions get lifted and Iran becomes part of the free world then opportunities are enormous. I think it is a new market altogether. I think it will be great for everyone..all the Indian companies," he said.