L&T, Kalpataru Submit Lower Bids for Aramco's $10 Billion Master Gas System Project

23 Feb 2024 , 02:08 PM

As for the Saudi Aramco Master Gas System (MGS) Project, the lowest-bidders are Larsen & Toubro (L&T) and Kalpataru Power Transmission Ltd.

The $10 Billion MGS-3 project intends to increase the greatest oil exporter in the world’s capacity to process gas. Both businesses were chosen as contractors for the project out of ten, with Kalpataru winning the lowest bid for three packages and L&T for one.

This development highlights how Indian engineering and construction companies are becoming more and more significant in the global energy industry. The choice made by Saudi Aramco to award the contracts to L&T and Kalpataru is indicative of their proven performance and proficiency in managing intricate projects.

The MGS-3 project is anticipated to greatly improve Saudi Arabia’s capacity for processing gas, assisting with the nation’s aspirational objectives for energy diversification.

This revelation follows a decline in L&T’s stock on February 19, which was caused by rumours that Saudi Aramco had delayed the bidding process for orders worth $10 Billion that were connected to the Safaniyah oilfield projects. There were rumours that L&T was vying for a significant EPC contract related to the Safaniyah oilfield. A Saudi decision to limit production is the reason for the delay in the Safaniyah expansion, according to reports from CNBC-TV18 on Monday.

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