L&T classifies orders above ₹15,000 crore as "ultra-mega" ones.
The company said the order is to set up a natural gas liquids plant allied facilities in the Middle East.
It won the order in consortium with the Greece-headquartered Consolidated Contractors Group SAL (Offshore) (CCC).
The scope of work includes engineering, procurement, construction, installation and commissioning of the plant and allied facilities to process rich associated gas (RAG), L&T said. This also involves all associated utilities and offsite and integration with existing facilities, it added.
Under the consortium, L&T, which is the lead partner, said it will be responsible for the engineering and procurement while CCC will handle the construction activities.
The RAG sourced from offshore and onshore oil fields will be treated at the plant to remove impurities such as hydrogen sulphide, carbon dioxide and water, producing value-added products such as lean sales gas, ethane, propane, butane and hydrocarbon condensate, it added.
"This project is not just about scale but is also about bringing in advanced engineering, long-term reliability measures and complex brownfield interfaces to deliver value-added products," Subramanian Sarma, L&T's deputy managing director and president, said.
Brokerage firm Investec, in a note on Wednesday, October 8, wrote that L&T is poised to win several large, multi-billion-dollar contracts.
L&T is favourably placed to win orders between $10 billion to $15 billion, which includes the Yanbu Green Hydrogen project, Kuwait Gulf Oil order, Dorra Gas project and the Aramco Brownfield expansion, Investec wrote in its note.
As a result, Investec maintained its "buy" rating on the stock with a price target of ₹3,736 per share, implying an upside potential of 20% from Tuesday's closing levels.
L&T shares gained nearly 1.8% to hit an intraday high of ₹3,796.4 apiece on Thursday. The stock was up 1.2% at ₹3,775 apiece around 11.10 am. The stock has gained 23.6% in the last six months.
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