L&T Energy bags 'large' contract from IOCL

Larsen & Toubro said that the hydrocarbon-onshore division of L&T Energy business has been awarded a large contract from Indian Oil Corporation (IOCL).

As per L&T's classification, the value of the large project is 2,500 crore to 5,000 crore.

The company said that IOCL is implementing the Panipat Refinery Expansion (P-25) project to enhance refining capacity from 15 million metric tonne per annum (MMTPA) to 25 million metric tonne per annum to meet the growth in demand of petroleum products and to increase their profitability and competitiveness in the long run.

The scope of the project involves setting up a residue hydrocracker unit (RHCU) for this P-25 project. The RHCU is licensed by Axens (France) with a capacity of 2.5 million metric tonne per annum and will upgrade the vacuum residue (VR) to high-value commercial products (mainly diesel). The contract is awarded through international competitive bidding on a lump sum turnkey (LSTK) basis.

L&T earlier bagged a significant EPCC contract for setting up DHDT Unit (5.0 MMTPA, licensed by Shell) under the same P-25 project of IOCL at Panipat-Refinery, said L&T.

Subramanian Sarma, whole time director & senior executive vice president (Energy) said, We are very delighted to be part of this large expansion project of IOCL-Panipat. I would like to thank IOCL for having trust in our capabilities. We are fully committed to delivering the complex process units with high standards of HSE and Quality.

Meanwhile, the company said that it has commissioned a green hydrogen plant at its AM Naik Heavy Engineering Complex in Hazira, Gujarat on Friday post market hours.

The production of green hydrogen based on an alkaline electrolysis process has on 20 August 2022. The plant will produce 45 Kg of green hydrogen daily, which will be used for captive consumption in the company's Hazira manufacturing complex.

The green hydrogen plant is designed for an electrolyser capacity of 800 kW comprising both alkaline (380 kW) and PEM (420 kW) technologies and will be powered by a rooftop solar plant of 990 kW peak DC capacity and a 500 kWh battery energy storage system (BESS).

Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide.

The EPC major's consolidated net profit surged 44.9% to Rs 1,702.07 crore on 22.2% jump in net sales to Rs 35,853.20 crore in Q1 FY23 over Q1 FY22.

Shares of Larsen & Toubro declined 0.94% to Rs 1,917.65 on the BSE.

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