MUSCAT, JUNE 30
The Minerals & Metals business of Indian engineering and construction conglomerate Larsen & Toubro (L&T) has been selected by Meranti Green Steel to oversee the delivery of the front-end engineering and design (FEED) stage of its green iron project planned at the Special Economic Zone in Duqm in southeastern Oman.
Phase 1 focuses on a 2.5 million tonnes per annum (Mtpa) direct reduced iron (DRI) / hot briquetted iron (HBI) facility, with a final investment decision (FID) anticipated in the third quarter of this year.
Announcing its selection, Meranti said in a post: “Following a competitive process with world-class firms, we are pleased to be partnering with Larsen & Toubro (L&T) as our project delivery partner for the front-end engineering and design (FEED) stage of our 2.5 Mtpa DRI/HBI plant in Duqm, Oman.
FEED is where the plant takes shape in detail—process, layout, cost and schedule are engineered and de-risked before we build. L&T’s Minerals & Metals team brings the large-scale engineering capability and ‘tons’ of experience to do that with us,” the Singapore-headquartered developer stated.
L&T is one of India’s largest engineering, procurement and construction (EPC) companies, with operations spanning infrastructure, energy, hydrocarbons, heavy engineering, information technology, defence, manufacturing and services across more than 50 countries.
Its Minerals & Metals (M&M) business is a leading provider of EPC solutions for the mining and metallurgical sectors, delivering projects across mineral beneficiation, bulk material handling, pelletisation, iron and steel plants, non-ferrous metal processing, alumina and aluminium facilities, cement plants, and associated infrastructure.
Significantly, the announcement is the latest in a series of milestones designed to prepare the ground for the seamless implementation of the landmark project ahead of an FID expected in the next quarter.
Earlier, the investor selected Midrex Technologies, a global leader in direct reduced iron (DRI) technology, to supply the hydrogen-ready direct reduction process for its green iron plant, enabling the progressive substitution of natural gas with green hydrogen as fuel. Paul Wurth, the Luxembourg-based metallurgical engineering specialist and part of Germany’s SMS group, has been entrusted with engineering and integrating the ironmaking complex based on Midrex technology.
KfW IPEX-Bank is advising Meranti as lead arranger, while Jebsen & Jessen Industrial Solutions (JJIS) has been appointed as a key partner for the project’s export credit agency (ECA)-backed debt financing.
Earlier this year, Meranti revealed offtake commitments covering much of the plant’s output. Under the agreements, 1.0 Mtpa of HBI will be supplied to German-based global industrial materials trader Thyssenkrupp Materials Trading, while 0.25 Mtpa has been committed to INTERFER Edelstahl and INTERFER Austria. The remaining volumes will be allocated to Swiss-based commodity trading and mining major Glencore, as well as to Meranti’s upcoming steel plant in Rayong, Thailand, supporting the ramp-up of green hot-rolled coil production.
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