Kalpataru Projects secures $907 million deal from Aramco

Engineering, procurement, and construction (EPC) firm Kalpataru Projects International Ltd (KPIL) has won three contracts to the tune of $906.6 million (about 3.4 billion Saudi riyal) from energy giant Aramco to expand gas supply network in Saudi Arabia, the company said.  

These contracts are for three different parts of the third expansion phase of the Master Gas System Network (MGS‐3) in Saudi Arabia. The contract involves laying over 800 km of lateral gas pipeline. 

In February, Moneycontrol reported that Kalpataru Projects and Larsen and Toubro Ltd had emerged as the lowest bidders for the MGS project.

The company received a letter of intent (LoI) from Aramco to carry out EPC work for three packages of the third expansion phase of the MGS-3 in Saudi Arabia.

KPIL is a specialized EPC firm engaged in power transmission and distribution, buildings and factories, water supply and irrigation, railways, oil and gas pipelines, flyovers and metro rail, highways, and airports.

The company executes projects in some 30 countries and has a global footprint in over 70 countries. The company, however, reported a marginal drop in its consolidated net profit to ₹150 crore in Q4 of FY24 from ₹152 crore in the comparable period last year despite higher revenues. The Company’s total income increased to ₹5,179 crore in the March quarter, up from ₹4,418 crore in the comparable period last year.

The $10 billion MGS phase three project will see the conversion of several power plants from oil to natural gas. This expansion will enable Aramco to meet Saudi Arabia’s growing demand Arabia and replace liquid fuel burning, contributing to Saudi Arabian efforts toward a diverse energy mix.