Larsen & Toubro awarded mega $1.5 billion contract by Saudi Aramco

In a significant development, Saudi Aramco has awarded the main EPC (engineering, procurement, and construction) contract for the first phase of its ambitious Carbon Capture & Storage (CCS) hub to Larsen & Toubro’s Energy Hydrocarbon (LTEH) division. The contract, valued at approximately $1.5 billion, is part of Aramco’s Accelerated Carbon Capture & Sequestration (ACCS) initiative aimed at reducing carbon emissions and enhancing the company’s CCS capacity.

Phase 1 of the project is pivotal in advancing Saudi Aramco’s broader environmental objectives, as the company pushes to mitigate its carbon footprint and strengthen its position in the global energy transition. While CNBC TV18 reached out to L&T for confirmation, the company has yet to comment on the award.

L&T’s recent performance reflects a robust order book, which stood at ₹5.46 lakh crore as of Q3FY25, marking 20% year-on-year (YoY) growth. Despite this, the company has seen a slight decline in expected order prospects for the upcoming Q4 FY25, with projected orders amounting to ₹5.51 lakh crore, compared to ₹6.72 lakh crore in Q4 FY24—a 12% year-on-year dip. This decline is attributed to reduced opportunities in the hydro and carbon-lite project sectors.

Despite the dip in order prospects, L&T remains optimistic, having maintained its growth guidance across all key parameters. The company expects a 10% growth in order inflows and is confident that it will exceed this target, reflecting its strong market position and diverse project portfolio.