Kalpataru Projects International Ltd (KPIL) saw its shares rise by 3 percent in early trading, continuing a four-session upward trend following the company’s announcement on March 5th regarding a significant order from Saudi Arabia’s Aramco.
This order pertains to the engineering, procurement, and construction (EPC) work for three segments of the third expansion phase of the Master Gas System Network (MGS‐3) in Saudi Arabia.
As of 9:36 am, KPIL’s stock was up nearly 2 percent at Rs 1,019 on the NSE. Over the past six months, Kalpataru Projects shares have surged by 50 percent, with a nearly 20 percent increase in the past month alone.
The EPC responsibilities encompass laying over 800 km of lateral gas pipeline. The precise contract value for the three segments will be determined upon contract finalization, as stated by Kalpataru Projects in their filing.
The MGS‐3 expansion aims to enhance the existing gas network to cater to various industrial consumers in the region, thereby addressing the escalating energy demand in Saudi Arabia and phasing out the use of liquid fuels.
Kalpataru Projects has been dedicated to bolstering its presence in the Middle East’s oil and gas market in recent years. This latest order underscores the company’s commitment to expanding its footprint across the global oil and gas EPC sector, according to Manish Mohnot, Managing Director and CEO of Kalpataru Projects.
Furthermore, Mohnot emphasized that this substantial order will bolster the company’s order book profile and propel its oil and gas business towards robust growth in the future. It is anticipated that upon project completion, it will play a significant role in supporting Saudi Arabia’s energy transition.
KPIL, formerly known as Kalpataru Power Transmission Ltd, is thus poised to leverage this opportunity to solidify its position in the oil and gas sector.
