L&T subsidiary wins biggest EPCC contract of over Rs 7,000 crore

The order, classified as large, has a size between Rs 2,500-5,000 crore, informed the company in its release

L&T Hydrocarbon Engineering, a wholly owned subsidiary of Larsen & Toubro, on Monday said it has won an order from HPCL Rajasthan Refinery (HRRL) worth over Rs 7,000 crore, the biggest EPCC contract awarded in the country in the refinery and petrochemical sector. 

HRRL is a joint venture between Hindustan Petroleum Corporation (HPCL) and the government of Rajasthan. The EPCC contract is for setting up a dual feed cracker unit (DFCU) for the project at Barmer, Rajasthan, said the company in a release. “We are very delighted to be part of this mega development project in Rajasthan and I would like to thank HRRL and HPCL for having trust in our capabilities to deliver such complex process plants with high standards of HSE and Quality,” Subramanian Sarma, whole-time director and senior EVP (Energy) at L&T said.

The DFCU is used to convert refinery naphtha and offgases to produce polymer-grade ethylene and propylene by the process of thermal cracking.

The ethylene and propylene is used as feedstock for downstream polyethylene unit and polypropylene unit. The process also produces by-products like butadiene, benzene, toluene and gasoline. 

The firm in a separate release said it had won another contract from the JV with an order size between Rs 2,500 crore and Rs 5,000 crore. The EPCC deal is for setting up a petrochemical fluidised catalytic cracking, including propylene recovery unit for the refinery project.The PFCC will convert the heavy hydrocarbons from the vacuum distillation unit to produce more valuable gasoline, diesel, propylene and lighter products by catalytic cracking.

 “This is another package that LTHE has won from HRRL amid stiff global competition. It will be our endeavour to live up to the trust reposed by HRRL and HPCL in our execution capabilities and quality assurance,” Sarma said.