L&T signs MoU with US-based KBR for building refineries

Larsen & Toubro's (L&T) hydrocarbon arm signed a memorandum of understanding (MoU) with US-based engineering company KBR for construction of modular process plants for refinery and petrochemicals projects.

KBR and L&T Hydrocarbon Engineering (LTHE) will cooperate to expand business opportunities for refineries and petrochemical units.

"Through this MoU with KBR, LTHE will combine its best-in-class engineering, world class modular fabrication facilities and core strength of project management and construction to offer safe, reliable, and optimized solutions to our customers," said Mr Subramanian Sarma, managing director and chief executive officer of LTHE.

This has given LTHE opportunity to exclusively bid for KBR’s solid acid alkylation technology, solvent de-asphalting technology, and catalytic olefins technology for global projects with special emphasis on India, South East Asia, Middle East, and Africa.

In FY20, L&T's hydrocarbon has reported a decline of 25 per cent in new orders at Rs 20,964 crore (US$ 2.97 billion) due to delay of orders mainly in onshore vertical. The companies across the world have delayed petrochemical projects in view of the economic slowdown and ongoing uncertainties due to the COVID-19 pandemic.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.