L&T shares gain after storage tank order from Petronet LNG, its second 'large' one in three days

Larsen and Toubro (L&T) Ltd. on Friday, January 16, said its hydrocarbon onshore business vertical won a "large" order from Petronet LNG, a joint venture promoted by four leading PSUs — ONGC, Indian Oil Corp, GAIL (India) and BPCL.

L&T classifies orders in the ₹2,500 crore to ₹5,000 crore range as "large".  This is the company's second "large" order in three days.

The project is to be delivered entirely on a lump sum turnkey basis. It comprises engineering, procurement, construction and commissioning of a liquefied natural gas (LNG) / ethane double-wall storage tank with a capacity of 1,70,000 cubic metre and a propane double-wall storage tank with a capacity of 1,40,000 cubic metre at the Dahej Petrochemical Complex in Gujara,

L&T said.

The scope also includes ethane and propane handling and despatch facilities to support the propane dehydrogenation and polypropylene plant, L&T said.

The project is part of India's first petrochemical complex integrating cold energy utilisation from an LNG terminal and is expected to contribute towards bridging the domestic polypropylene demand-supply gap, it added.

On Wednesday, L&T won another "large" order from Torrent Energy Storage Solutions Pvt. ltd. to construct the 3,000 MW Saidongar-1 Pumped Storage Project (PSP) in Raigad, Maharashtra.

This is India's biggest pumped storage project, L&T said. The PSP will comprise 10 units of 300 MW each, it said.

The scope of work includes design, engineering and execution of all civil and hydro-mechanical jobs associated with the project.

The company said PSPs are vital to ensure grid stability and meeting peak power demand. The Saidongar-1 project is expected to enhance grid reliability and energy security for Maharashtra and beyond, it added.

Shares of L&T were in the news this week after MEED had reported that Kuwait is planning on cancelling projects worth nearly $9 billion, which sparked a sell-off in the stock. While the company did issue a clarification, analysts cut their earnings estimates on the stock, projecting this development to be a potential overhang on the stock.

L&T shares were trading 1.1% higher at ₹3,908.6 apiece around 10.20 AM on Friday. The stock has gained 10.7% int he past year.

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