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L&T wins major petronet LNG project

Hydrocarbon Onshore arm to build cryogenic storage facilities at Gujarat’s Dahej petrochemical complex

Engineering and construction major Larsen & Toubro (L&T) has secured a large order from Petronet LNG for a key petrochemical project in Gujarat, strengthening its position in India’s energy infrastructure space. The contract has been awarded to L&T’s Hydrocarbon Onshore business and falls under the company’s “large” order category, which typically implies a value ranging between ₹2,500 crore and ₹5,000 crore.

Petronet LNG is a joint venture promoted by four state-run energy majors — ONGC, Indian Oil Corporation, GAIL (India) and Bharat Petroleum Corporation. The company has commissioned L&T to execute the project at its Dahej Petrochemical Complex on a lump sum turnkey basis, covering engineering, procurement, construction and commissioning.

As part of the project scope, L&T will build advanced cryogenic storage infrastructure to support downstream petrochemical operations. This includes a 170,000 cubic metre LNG/ethane double-wall storage tank and a 140,000 cubic metre propane double-wall storage tank. In addition, the company will develop associated facilities for handling, storage and dispatch of ethane and propane, which are essential feedstocks for petrochemical manufacturing.

The Dahej facility is being developed as India’s first integrated petrochemical complex to leverage “cold energy utilisation” from an LNG terminal. This innovative approach is expected to improve energy efficiency by using the cold energy released during LNG regasification in downstream petrochemical processes. The project will support the production of polypropylene through propane dehydrogenation (PDH) units, helping reduce India’s dependence on imported polymers.

L&T said the order reflects its strong capabilities in executing complex hydrocarbon projects that require high levels of technical expertise, safety compliance and timely delivery. The company has a long track record in building large-scale oil, gas and petrochemical infrastructure in India and overseas.

The contract win is also aligned with India’s broader push to expand domestic petrochemical capacity and strengthen value addition within the country. Market participants view the order as a positive development for L&T, reinforcing its robust order book and steady flow of large domestic projects.

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