Larsen & Toubro's hydrocarbon onshore unit, in partnership with Greek firm Consolidated Contractors Group, has booked an ultra-mega contract valued at over ₹150 billion to build a natural gas liquids plant and associated processing facilities in the Middle East. The engineering, procurement, construction, installation and commissioning scope will cover the handling of rich associated gas, integration of utilities, and interfacing with existing infrastructure.

L&T will lead engineering and procurement tasks, while CCC will manage the construction work under the consortium arrangement. The plant will process RAG-supplied from both offshore and onshore fields-by removing contaminants such as H2S, CO2 and water to yield products including lean sales gas, ethane, propane, butane and hydrocarbon condensate.

The chairman and managing director of L&T, S. N. Subrahmanyan, described the contract as affirmation of L&T's capabilities in executing complex energy infrastructure assignments and expanding its global footprint. Subramanian Sarma, deputy managing director and president, highlighted that the project demands advanced engineering, careful brownfield integration and long-term reliability measures.

This order adds to a growing pipeline of Middle Eastern energy infrastructure projects awarded to Indian EPC players amid a rebound in regional investment. L&T's hydrocarbon arm already undertakes significant work in EPC across upstream, midstream and downstream domains, having previously delivered refinery expansions, petrochemical complexes, gas processing units, LNG terminals and cross-country pipelines.

Market reaction was positive: L&T shares climbed over 1.4 percent following the announcement, with investor confidence boosted by the scale and prestige of the contract. Analysts noted that the ultra-mega designation applies to orders above ₹15,000 crore, aligning this deal among L&T's most significant wins.

This project comes at a time when Middle Eastern oil and gas producers are increasingly investing in natural gas infrastructure, both to monetise associated gas and to meet internal demands. Rising global demand for gas liquids as feedstock in petrochemicals and as cleaner-burning fuels strengthens the appeal of such investments.

Competition in the EPC sector has been stiff. International and regional players are vying for large upstream and midstream orders, especially as governments in Gulf countries accelerate diversification of energy portfolios. For L&T, this win consolidates its position as a trusted contractor capable of handling high-stakes, high-complexity projects across continents.

Execution challenges will be considerable. The integration of new systems with ageing or existing fields often carries high technical and schedule risk. Ensuring safety, timely delivery and cost control will be key performance parameters. Given the geopolitical sensitivity of the region, disruption risks-such as regulatory changes, labor dynamics or supply chain constraints-must also be managed proactively.

This contract also deepens L&T's relationship with global oil and gas majors, opening doors to future opportunities in adjacent areas like petrochemicals, carbon capture, and gas infrastructure. As countries in the Gulf region push for modernisation and energy transition, players with strong engineering pedigrees and global reach may capture a larger share of forthcoming project pipelines.

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