Mumbai: Construction major Larsen and Toubro Ltd (L&T) has inked a manufacturing deal with Saipem and Clough JV for producing and supplying pipe-rack modules for Perdaman Chemicals and Fertilisers’ 2.3 million metric ton per annum urea facility in Australia. As part of the deal, L&T Energy Hydrocarbon will be setting up a unit on Burrup Peninsula, 20 km north of Karratha in Western Australia.
Piperack modules are made of prefabricated steel beams and are used to support heavy pipes in industrial premises. The module must be fire resistant, have anti-corrosive capabilities and sustain wind and seismic vibrations. Typically, piperack modules are used in industries such as oil and gas, chemicals, and power generation.
L&T said the contract includes the gradual delivery of around 1,160 MT of equipment over a span of 25 months. While it did not disclose the contract value, the company described it as “significant”, indicating an order value of ₹1,000- 2,500 crore. “This milestone aligns with our strategic goal of expanding in geography and client base underscoring our commitment to extend the concept of modularization to onshore projects,” Subramanian Sarma, whole time director and senior executive vice president, energy, L&T, said.
The firm aims to supply about 50,000 MT of modules in 32 months. These modules will be produced at L&T’s Kattupalli Modular Fabrication Facility. “Products will be shipped in a fully tested, pre-commissioned and in ready to install condition to project site in Australia,” said L&T.
Shares of L&T closed at ₹2,662.25 apiece on Monday, up 0.77%. “L&T have gone through the meticulous tender process and got a significant modular fabrication package based on its technical expertise, quality, health, safety and environment and operational excellence. We look forward to achieving this critical milestone with SCJV and L&T,” said Perdaman chairperson Vikas Rambal.
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Updated: 21 Aug 2023, 11:41 PM IST
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