Indian Companies Bag Prestigious Orders
Larsen & Toubro (L&T), one of the largest private sector companies in India, formally signed a contract this morning with Kuwait National Petroleum Company (KNPC) for manufacture and supply of 22 Hydrocracker & ARDS Reactors for KNPC's prestigious "Clean Fuel Project 2020". The total value of the contract is KD 117.89 million, equivalent to USD 421 million. This is the largest ever order placed with any single manufacturer in the world for such critical reactors.
Another contract was signed this morning between the Bridge & Roof Co. (India) Ltd, a Government of India Enterprise, with Kuwait Oil Company (KOC) for a contract for construction of Dry Crude Oil Tank at Gathering Center (GC 01) which includes demolition of two existing tanks with new piping and associated work. The value for this Contract is KD 2,350,700, equivalent to USD 8.44 million. The duration for this contract is 15 months. Mr. Mukesh Jha, the Managing Director of Bridge & Roof is in Kuwait to sign the contract with KOC.
The reactors for KNPC will be manufactured by the Heavy Engineering Division of L&T based in Hazira in the state of Gujarat in India from advanced technology steels containing Chromium, Molybdenum and Vanadium, with thickness up to 300 mm and weights up to 1450 MT. These reactors are scheduled to be delivered to the refineries in Kuwait by the third quarter of financial year 2010-11.
Earlier, L&T had supplied the world's largest Tubular Reactor weighing 1500 tons for Equate Petrochemical's Olefins II Project in August 2007. This was in addition to another 800 MT Reactor supplied in January 2006. L&T is currently executing an order for a critical heat exchanger train for the same project. It is also involved in the replacement market for critical equipment in refineries for upgradation projects.
In addition to the above, L&T is executing a USD 130 million EPC order for Kuwait Aviation Fuel Company (KAFCO). It involves building of new fuel depots as well as laying of a 32 km pipeline to transport fuel from Mina Ahmadi Refinery to the new fuel depots and to the Airport. L&T has established a local company Larsen & Toubro Kuwait Construction Company to cater to the needs of professional and efficient construction contracts for upcoming projects in Oil & Gas, Power and water sector.
L&T's plant at Hazira having state-of-the-art facilities is rated as one of the largest and most modern manufacturing complexes situated on a water front with easy access to the sea. The company has adequate capacity to handle many such orders for supply of critical equipment.
The conclusion of these contracts between the renowned Indian companies and the Kuwait oil sector companies will further strengthen the trade and economic relations between the State of Kuwait and the Republic of India. These will also help establishing the presence of leading Indian private and public sector companies in the State of Kuwait.