Larsen & Toubro (L&T) and Kalpataru Power Transmission Ltd have emerged as the lowest bidders for Saudi Aramco's Master Gas System (MGS) Project.
The MGS-3 project, valued at $10 billion, aims to expand the gas processing capacity of the world's largest oil exporter. The two companies are among the 10 selected contractors for the project, with Kalpataru securing the lowest bid for three packages and L&T for one package.
This development underscores the growing importance of Indian engineering and construction firms in the global energy sector. Saudi Aramco's decision to award the contracts to L&T and Kalpataru reflects their strong track record and expertise in executing complex projects.
The MGS-3 project is expected to significantly enhance Saudi Arabia's gas processing capabilities, supporting the country's ambitious energy diversification goals.
This news comes after L&T's shares experienced a dip on February 19, following reports of Saudi Aramco postponing the bid process for $10 billion orders related to the Safaniyah oilfield projects. It was speculated that L&T was in contention for a major EPC order concerning the Safaniyah oilfield. The delay in the Safaniyah expansion is attributed to a Saudi directive aimed at capping production, as reported by CNBC-TV18 on Monday.
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