Riyadh, March 2024 — Indian engineering giant Larsen & Toubro (L&T) has been awarded a major onshore gas pipeline engineering, procurement, and construction (EPC) contract in Saudi Arabia. This project marks the largest cross-country pipeline contract for the company, emphasizing Saudi Arabia’s ongoing commitment to expanding its energy infrastructure as part of Vision 2030.
The contract involves constructing two 56-inch pipelines that will run parallel to the existing corridor, along with associated infrastructure such as scraper receivers, launchers, and main line isolation valve stations(SaudiGulf Projects). The scope of the work highlights Saudi Arabia’s drive to enhance its gas transportation capabilities as it shifts towards greater gas production to meet domestic and industrial demands.
A Key Project in Saudi Arabia’s Energy Strategy
The gas pipeline project forms part of Saudi Arabia’s broader energy strategy, aimed at boosting gas output and reducing reliance on oil as a primary fuel source. The project aligns with the country’s Vision 2030 goals, which include diversifying its energy mix and developing its gas infrastructure to support local industries and export capacity.
L&T’s Hydrocarbon division, known for its expertise in large-scale EPC projects, will oversee the entire construction process. This division has previously worked on other significant projects in the Middle East, but this latest contract represents a milestone for the company due to its scale and strategic importance(SaudiGulf Projects).
Expanding Gas Infrastructure
This contract is part of Saudi Arabia’s broader push to expand its gas network, with projects like the Master Gas System (MGS) expansion and developments in the Jafurah shale gas field. These efforts aim to position the Kingdom as one of the world’s top gas producers by 2030(Pipeline Journal).
L&T’s contract win further underscores Saudi Arabia’s commitment to expanding its gas infrastructure as part of its Vision 2030 goals. As the country continues to push for energy diversification and sustainability, such large-scale projects will be critical in ensuring that Saudi Arabia meets its future energy needs.
