Larsen & Toubro (L&T), through its Energy Hydrocarbon Onshore business, has secured a major Engineering, Procurement, and Construction (EPC) contract from Kuwait Oil Company (KOC) to develop critical infrastructure for the Jurassic Light Oil (JLO) export project. The contract represents another significant milestone for L&T in the Middle East and reinforces its position as a leading global EPC contractor in the hydrocarbon sector.
The project focuses on expanding Kuwait’s crude oil export capabilities to support rising production from the Jurassic Light Oil fields. Under the scope of the contract, L&T will design, procure, construct, and commission six new crude oil storage tanks, each with an operational capacity of approximately 618,000 barrels. The project will be executed on a Lump Sum Turnkey (LSTK) basis, ensuring complete delivery of the facilities from engineering to final commissioning.
In addition to constructing the storage tanks, the project includes the installation of new crude oil pipelines and extensive modernization of Kuwait’s existing crude loading and export infrastructure. These upgrades are intended to improve the efficiency, reliability, and capacity of the country’s crude oil transportation network while enabling seamless handling of increased production volumes from the Jurassic reservoirs.
The award reflects Kuwait Oil Company’s confidence in L&T’s proven expertise in executing large-scale hydrocarbon infrastructure projects with high standards of safety, quality, and operational excellence. Over the years, L&T has successfully delivered several complex oil and gas projects across upstream, midstream, and downstream segments in international markets, strengthening its reputation as a trusted engineering partner.
Commenting on the contract, E. S. Sathyanarayanan, Senior Vice President and Head of L&T Energy Hydrocarbon Onshore and Member of the Divisional Board, stated that the company is honored to support Kuwait’s long-term energy development plans. He noted that the Jurassic Light Oil export infrastructure project represents a strategic investment for Kuwait’s oil industry and reaffirmed L&T’s commitment to delivering world-class engineering solutions that contribute to the nation’s energy objectives.
L&T Energy Hydrocarbon Onshore has established a strong global presence by executing turnkey projects that include refinery expansions, petrochemical complexes, LNG terminals, gas processing plants, fertilizer facilities, and cross-country pipeline networks. The latest order further strengthens the company’s international project portfolio and highlights continued investment in hydrocarbon infrastructure across the Middle East. As global energy demand remains resilient, such investments are expected to enhance Kuwait’s export capabilities while supporting the modernization and long-term sustainability of its oil sector.
Impact on Products and ChemAnalyst Chemical Prices
The expansion of Kuwait’s crude oil storage and export infrastructure will strengthen long-term crude supply reliability, benefiting refinery feedstocks and downstream petroleum products such as gasoline, diesel, jet fuel, naphtha, LPG, and petrochemical feedstocks. Improved export capacity could also support higher production of polymers and chemical intermediates. In the short term, the project will increase demand for construction materials, steel, coatings, industrial gases, and pipeline chemicals. For commodities tracked by ChemAnalyst, prices of epoxy resins, protective coatings, steel-related inputs, welding consumables, and industrial chemicals may witness firm demand during project execution, while crude-derived petrochemical feedstock prices are expected to remain largely stable unless accompanied by significant production increases.
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