Mumbai-based engineering company Larsen & Toubro Limited (L&T) has, over recent years, established itself as a major player in the global energy EPC market. The company’s footprint, especially in the Middle East, has been expanding with some very large contracts. As such, L&T now has a significant presence in the hydrocarbon and renewable energy verticals. In a landmark development, the company recently secured its biggest-ever contract.

In late March, the $24bn firm secured an “ultra mega” offshore contract for the North Field Production Sustainability Offshore Compression Project (NFPS COMP 4) from QatarEnergy LNG. This deal is L&T’s biggest-ever contract. The company categorises an “ultra mega” project as one with a value of more than INR150bn ($1.75bn). L&T did not disclose the exact value of the project; however, media reports suggest it could be over $4bn. The project will be undertaken by L&T’s hydrocarbon division—L&T Energy Hydrocarbon.

The project includes the engineering, procurement, fabrication, installation, and commissioning of two offshore compression complexes. Each complex will feature large offshore platforms equipped with compression and power generation facilities, living quarters, flare platforms, interconnected bridges, and other related structures. These will be situated approximately 80 km off Qatar's northeast coast.

In February, L&T won a contract from Saudi Aramco for the first phase of its carbon capture & storage (CCS) hub. The $1.5bn contract is part of Aramco's Accelerated Carbon Capture & Sequestration (ACCS) initiative, aimed at reducing carbon emissions and enhancing the company’s CCS capacity.

New renewables business

In September 2024, L&T established a separate business vertical for renewable EPC, carving it out from its power transmission and distribution division within the infrastructure projects segment. To enhance management visibility and ensure the seamless integration of resources and capabilities, L&T has created the renewable EPC business as an addition to its construction verticals.

The company’s expertise extends beyond ground-mounted solar to include floating solar, wind balance-of-plant projects, and battery energy storage systems. This division works closely with L&T’s grid and digital energy solutions division. As a result, in January L&T received a “significant” order to build Uzbekistan's first AI-enabled and sustainable 10-MW data centre in Tashkent. The company will be responsible for the engineering, procurement, and construction of this new-age data centre, equipped with AI capabilities to power next-generation AI applications, minimise environmental impact, and maximise energy efficiency.

In Saudi Arabia, the company is also involved in major projects such as the 700-MW Ar Rass Solar PV IPP, the 2,000-MW Ar Rass-2 Solar PV IPP, and the 1.6-GW Sudair solar plant. Recently, L&T announced orders for two additional plants with a combined capacity of 3.5 GWac.

The company is also responsible for the power and grid systems at one of the world’s largest green hydrogen plants at NEOM, also in Saudi Arabia. Further advancing renewable infrastructure, L&T is working on a 250-MWp solar PV plant in the Amaala Project and has completed a large-scale solar installation in Jeddah.

Also in January 2025, the renewables business vertical of L&T was selected by Masdar as one of the preferred EPC contractors for the north site of the world's first 24/7 solar and battery storage gigascale project. This will be developed in Abu Dhabi.

To this end, Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy leader, in collaboration with Emirates Water and Electricity Company, announced at Abu Dhabi Sustainability Week (ADSW) that it is setting up the project, which will have the capability to develop up to 1 GW of power 24-hours-a-day. The project will feature a 5.2-GW (DC) solar photovoltaic (PV) plant, and both will be coupled to a 19-GWh BESS, to make it the largest such solar and BESS project globally. The project will constitute a north site and a south site, amounting to 2.6 GW and 9.5 GWh PV capacity each.

In addition, L&T Energy Green Tech Limited (LTEGL) and John Cockerill have recently signed a memorandum of understanding (MoU) to develop technologies in concentrated solar power (CSP) and thermal energy storage (TES). LTEGL, a wholly owned subsidiary of L&T, provides sustainable energy solutions, including green hydrogen, its derivatives, and electrolyser manufacturing.

The MoU aims to identify and develop strategic collaboration opportunities in manufacturing, component supply, and engineering solutions essential for the successful implementation and deployment of CSP and TES projects.