Indian player wins ‘landmark’ contract for giant field off Qatar

Larsen & Toubro (L&T), an Indian multinational enterprise engaged in engineering, procurement, and construction (EPC), has won a contract with QatarEnergy LNG, a subsidiary of Qatar’s state-owned energy giant QatarEnergy.

The Indian player describes the contract for the North Field production sustainability offshore compression project (NFPS COMP 4), awarded to L&T’s Hydrocarbon Business (L&T Energy Hydrocarbon – LTEH), as the largest single contract ever received by the company.

While the exact value has not been disclosed, the contract falls within the ultra mega category, which the firm uses for contracts surpassing the 150 billion indian rupees mark, or around $1.7 billion.

The scope of work encompasses the engineering, procurement, fabrication, installation, and commissioning of two offshore compression complexes, each comprising large offshore platforms with compression and power generation facilities. Living quarters, flare platforms, interconnected bridges, and other associated structures to be located approximately 80 kilometers off the northeast coast of Qatar are also included in the scope of work. 

S. N. Subrahmanyan, L&T’s Chairman and Managing Director, said: “Securing QatarEnergy LNG’s Ultra Mega Offshore Contract—the largest single order in our history, is a landmark achievement. This prestigious project strengthens our global energy portfolio while supporting Qatar’s energy security objectives. I thank QatarEnergy LNG for placing their trust in L&T to deliver this complex and strategically important project. We look forward to setting new benchmarks in project execution that will reinforce Qatar’s position as a global LNG leader.”

The North Field, shared between Iran and Qatar and known as South Pars on the Iranian side, is considered the world’s largest single non-associated natural gas field. Lying off the northeast shore of the Qatar peninsula, it covers an area of more than 6,000 square kilometers, equivalent to about half the land area of the State of Qatar.​​

The North Field Expansion Project encompasses the North Field East (NFE), the North Field South (NFS), and North Field West (NFW) projects to raise Qatar’s LNG production capacity from 77 to 142 million tons per annum (mtpa) in 2030.​

“The award of a project of such nature is a reflection of the confidence and trust placed by QatarEnergy LNG in L&T’s expertise and its ability to deliver such large-scale projects for which L&T is very thankful. This collaboration not only strengthens our partnership but also reaffirms L&T’s commitment to supporting Qatar’s strategic energy objectives through innovative and reliable solutions,” noted Subramanian Sarma, L&T’s Deputy Managing Director and President.

Last year, Saipem won an EPC contract worth around $4 billion for the COMP 3A and COMP 3B portions of the North Field expansion project. The Italian major also worked on the COMP 2 portion thanks to a deal secured in 2022.