Indian engineering company L&T (Larsen & Toubro) has been awarded an ultra-mega EPC (Engineering, Procurement and Construction) contract worth roughly US$1.57 billion (over INR 15,000 crore) for a sour gas processing and compression plant in the Middle East, it is reported. The contract will be executed by L&T’s Energy Hydrocarbon Onshore business, and L&T itself classifies the project under its “Ultra Mega” category.
The project involves construction of a new onshore sour gas processing and compression plant, including gas gathering facilities, condensate and produced water treatment systems, and a propane refrigeration system, according to reports. L&T’s Power Transmission & Distribution (PT&D) business will separately construct two 230kV extra-high-voltage substations. The specific process technology or licensor used for sour gas treatment has not been disclosed.
L&T announced the contract award on August 24, 2026, but did not disclose the name of the client or the specific country where the project is located. The letter of award (LOA) is reported to have been issued during fiscal year 2026 (FY26).
L&T has steadily expanded its share of large-scale gas processing and petrochemical EPC contracts in the Middle East in recent years, and this award is seen as an extension of that trend. Implications for Korea’s Industry
The contract underscores the competitiveness of Indian EPC firms in the Middle East gas processing plant market, and Korean construction and engineering companies are said to be closely watching similar project tenders in the region.
Attention is focused on whether the client and the exact host country will be disclosed later, and when the construction and equipment procurement schedule will be finalized.