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L&T secures $1.8bn contracts in GCC for power grid expansion projects

L&T's Power Transmission & Distribution (PT&D) division has been awarded key contracts for projects in Saudi Arabia and the UAE

India’s Larsen & Toubro (L&T) has won new power grid orders worth up to $1.8 billion in the Middle East, further boosting its position as one of the leading global players in the power infrastructure and construction sector.

The company’s Power Transmission & Distribution (PT&D) division has been awarded key contracts for projects in Saudi Arabia and the UAE.

These contracts, valued between Rs100 billion and Rs150 billion ($1.2 billion to $1.8 billion), focus on strengthening and expanding high-voltage electricity grids in both Gulf countries, which are key markets for L&T’s continued growth in the region.

In Saudi Arabia, L&T has secured orders for setting up ±500kV High Voltage Direct Current (HVDC) transmission links as part of a massive national electricity network project.

The HVDC links will interconnect various regions of the kingdom, facilitating the exchange of power between them and enhancing the resilience of the national grid.

The project is part of Saudi Arabia’s plans to modernise its energy infrastructure and improve the reliability of its power system, particularly in light of the kingdom’s growing renewable energy sector.

In addition to the HVDC links, L&T will also be responsible for constructing two 380kV overhead transmission lines and a major 380kV Gas Insulated Substation (GIS) in Saudi Arabia.

The elements are critical to the renewable energy interconnection efforts, enabling the kingdom to integrate more renewable power sources into its grid, thus contributing to its broader sustainability goals under the Vision 2030 framework.

L&T’s PT&D vertical also won major contracts in the UAE, specifically for the construction of two 400kV Gas Insulated Substations in Abu Dhabi.

The substations will play a key role in increasing the power transfer capacity and ensuring the stability of the UAE’s electricity grid. As the demand for electricity in the UAE continues to grow, particularly in light of its expanding urban areas and industrial sectors, these new substations will support the country’s energy transition and renewable energy integration efforts.

The scope of work in Abu Dhabi includes not only the construction of the substations but also the installation of Series Current Limiting Reactors, Auto Transformers, and advanced control, protection, and monitoring systems.

The project also will include fault and power quality monitoring, telecommunications systems, and integration with the Load Dispatch Centre, ensuring seamless operation and maintenance of the grid.

“The fortification and modernization of transmission systems is the foremost step in establishing a secure, resilient grid capable of handling variable renewable generation in an evolving energy market,” said T. Madhava Das, Whole-Time Director and Senior Executive Vice President (Utilities) at L&T. “We thank our customers for entrusting these projects with us.”

Das noted that the new contracts will play a major role in enhancing the capacity and stability of the power grids in both Saudi Arabia and the UAE, two countries that are aggressively pushing forward with their energy transition plans.

He also highlighted the importance of the projects in bolstering renewable energy interconnection, allowing both countries to incorporate more solar, wind, and other clean energy sources into their grids.

Larsen & Toubro, a $27-billion Indian multinational, is renowned for its expertise in engineering, procurement, and construction (EPC) projects, high-tech manufacturing, and services. The company operates across multiple sectors and geographies, with the Middle East being one of its key markets.

L&T has been increasingly involved in the development of critical infrastructure projects in the region, particularly in the areas of energy, power transmission, and water management.

The company expects to continue playing a key role in shaping the future of power infrastructure in the Middle East through high-profile electric power projects that highlight its growing influence across the region.

Baset Asaba

Baset Asaba is an accomplished media and communications expert with extensive experience in creating impactful content across diverse platforms throughout the Middle East and Africa. With a background...