labels: larsen & toubro, industry - general, oil & gas
Larsen & Toubro, Lurgi-L&T-KQKS consortium wins $345-million order news
27 February 2006

Larsen & Toubro Ltd (L&T) has announced that with the official signature of contract held in Kuala Lumpur, Malaysia, the consortium of Frankfurt-based Lurgi AG, the company and Malaysian construction Company KQKS have bagged the order from Petronas Penapisan (Melaka) Sdn Bhd for building a lube oil plant.

The plant is to be incorporated into two existing plant complexes owned by Petronas. L&T''s scope of work against this order is valued at $198 million.

The lube oil plant, which is to start operation in spring 2008 and will be the first of its kind in Malaysia, will produce more than 2,000m3 feedstock for lube oil production per day, Lurgi''s scope of supplies and services covers the engineering and procurement of the two central process units produced under a license from ExxonMobil - the hydrotreater and the dewaxing unit. Moreover, Lurgi will lead the consortium established for the construction of the plant.

L&T''s scope of supplies and services covers the engineering and procurement of one central process unit VDU produced under a license from Exxomnobil and the offsites, utilities and control systems in the existing refinery. Construction of the plant will be carried out by local companies, L&T-ECC and KQKS Malaysia.

The consortium represents a combination of cutting edge global expertise in different segments of project execution. The Germany-based Lurgi is an industry leader in innovative and customised solutions for the petrochemical industry. Lurgi''s extensive experience in oil and gas projects combined with the project execution expertise of the Company and the familiarity and insight into local operating conditions of Kejuruteraan QKS are expected to ensure a high quality project and on-time delivery.

Foster Wheeler has beenretained as the project management consultant for the project.

The consortium bagged the prestigious order against keen competition from internationally reputed EPC contractors, on the strength of its track record in meeting refinery project quality requirements and conforming to stringent delivery schedules.


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Larsen & Toubro, Lurgi-L&T-KQKS consortium wins $345-million order