L&T Wins ‘Large’ Petronet Contract to Build Storage at Dahej Petrochemical Complex

MUMBAI — Larsen & Toubro (L&T) has secured a significant engineering contract from Petronet LNG Ltd, strengthening its role in the development of India’s first petrochemical complex designed to integrate “cold energy utilisation” from liquefied natural gas (LNG).

The order, classified by L&T as “large” and valued between ₹2,500 crore and ₹5,000 crore, was awarded to the company’s Hydrocarbon Onshore business. L&T will execute the project on a lump-sum turnkey (LSTK) basis at the Dahej Petrochemical Complex in Gujarat.

Complex cryogenic infrastructure

The scope of work includes engineering, procurement, construction, and commissioning (EPCC) of major double-wall cryogenic storage tanks — a 170,000 cubic metre LNG/Ethane tank and a 140,000 cubic metre Propane tank.

The contract also includes ethane and propane handling and despatch facilities required to support downstream units, including the Propane Dehydrogenation (PDH) and Polypropylene (PP) plant planned at the site.

Strategic impact

“Securing this prestigious order from Petronet LNG is a strong endorsement of our proven expertise in executing complex EPCC projects,” said E S Sathyanarayanan, Head of L&T Onshore.

The infrastructure will support Petronet’s petrochemical build-out and is expected to contribute towards bridging India’s polypropylene demand–supply gap by boosting domestic manufacturing capacity.

Petronet LNG is a joint venture promoted by four state-run energy companies — ONGC, Indian Oil, GAIL, and BPCL.

Brief Summary

L&T’s Hydrocarbon Onshore business has won a “large” order worth ₹2,500–₹5,000 crore from Petronet LNG to build key cryogenic storage infrastructure at the Dahej Petrochemical Complex in Gujarat. The project includes a 170,000 cubic metre LNG/Ethane tank and a 140,000 cubic metre Propane tank, supporting the upcoming PDH and polypropylene units. The complex is positioned as India’s first petrochemical project to integrate LNG cold energy utilisation.

Frequently Asked Questions (FAQs)

Q1: What contract did L&T win?

L&T won an EPCC contract from Petronet LNG to construct major ethane and propane storage infrastructure at the Dahej Petrochemical Complex in Gujarat.

Q2: What is the deal value?

L&T classified it as a “large” order worth ₹2,500 crore to ₹5,000 crore.

Q3: What exactly will L&T build?

The project includes two major double-wall cryogenic tanks:

• 170,000 cubic metre LNG/Ethane storage tank
• 140,000 cubic metre Propane storage tank
  It also includes related handling and despatch facilities.

Q4: What is special about this petrochemical complex?

It is designed to integrate cold energy utilisation from LNG. Since LNG is stored at extremely low temperatures and must be warmed before use, the complex aims to capture and use this “cold energy” to improve process efficiency.

Q5: What products will this complex support?

The storage infrastructure supports downstream production units including:

• Propane Dehydrogenation (PDH)
• Polypropylene (PP) manufacturing

Q6: Who owns Petronet LNG?

Petronet LNG is promoted by four government-linked PSU energy companies:
ONGC, Indian Oil, GAIL, and BPCL.