L&T Electromech Scores in Oman Gas Sector with $235 Million Project

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--L&T Electromech, a joint venture between India's Larsen & Toubro (Mumbai, India) and Oman-based international conglomerate the Zubair Corporation, has been contracted by Petroleum Development Oman (PDO) to build the Saih Rawi depletion compression project.

The $235 million engineering, procurement, construction and commissioning contract was won against strong competition from major international engineering companies and consortiums, including Petrofac, ABB Limited (NYSE:ABB), Samsung, Hyundai and Saipem. The joint venture was the lowest bidder for the project. Construction of the project will be executed by L&T Electromech, and engineering and procurement will be the responsibility of L&T India.

This is the Saih Rawl depletion compression project's second phase. When completed within 32 months, it will substantially enhance the capacity of the gas supply to end-users. The first phase of the project was commissioned earlier this year. L&T India will supply four compressors for the implementation of the project.

Saih Rawl, discovered in 1991, is the largest gas field in Oman. Gas and condensates from the field are collected and processed at the central processing plant, where the depletion compression is located. The treated gas is then transported to key customers, such as Oman Liquefied Natural Gas, Qalhat Liquefied Natural Gas, power plants and desalination units, Oman India Fertilizer Company, the Sur light industrial area, and the South Oman gas line via the Interconnector pipeline.

The L&T Electromech joint venture is focusing on oil, gas and power projects in Oman and is implementing a gas-processing plant in Laikhwair for PDO. The $150 million greenfield project is for treating an average of 3 million metric standard cubic meters per day of natural gas. The project is scheduled for completion in September 2013.

L&T and L&T Electromech have completed or are currently working on oil and gas projects in the Middle East and India.

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