India’s Larsen & Toubro (L&T) has won a $262m dollar contract to build a new crude transit pipeline from North Kuwait to Al-Ahmadi in the south of the country, confirming earlier MEED reports.

“L&T’s hydrocarbon division has bagged a major pipeline contract with a value close to Rs 1,700 crore from Kuwait Oil Company (KOC) for engineering, procurement and construction of a new 48” Crude Transit Line (TL-5) from North Kuwait to Ahmadi,” the Mumbai-based company said in a statement.

The pipeline project, which is set to have a capacity to transport up to a million barrels a day (b/d) is set for completion by the third quarter of 2020.

L&T emerged as the lowest bidder on the project in July. Lebanon’s Consolidated Contractors Company (CCC) submitted the next lowest bid of $312m, followed by Italy’s Saipem, which submitted a bid of $345m.

The list of bidders and their prices are understood to be:

• Larsen & Toubro ($262m)
• CCC ($312m)
• Saipem ($345m)
• China National Petroleum Corporation ($367.3m)

Seventeen international contractors were prequalified to submit proposals for the turnover of the TL5 pipeline project, which will transfer crude to the North and South Tank Farms for export.

The scope of work on the project includes:

• Execution of a new TL-5 pipeline
• All associated works
• Tie-ins
• Pig traps
• Sectionalising valves
• Control and instrumentation
• Control building at point A
• Stations and equipment
• Modifications and upgrade of existing TL-3 facilities

The crude pipeline scheme is also set to provide interfaces to the Lower Fars Heavy Oil Development as well as the construction of a new strategic gas export pipeline from North Kuwait to Mina al-Ahmadi.

KOC is undertaking an infrastructure upgrade of its crude transportation, storage and export facilities as it seeks to boost production to 4 million b/d by 2020.

The oil company had planned to tender the TL5 pipeline around the same time as Gathering Centre 32, which was awarded earlier this year to the UK’s Petrofac. The $1.65bn gathering centre is being developed to deal with increasing sourness from the southeastern Burgan field.

L&T is also executing KOC’s Gathering Centre 30, which it won in 2014. The project is expected to be completed later this year.