India’s L&T Secures FEED Contract for Meranti Steel Project: Implications for Investors and the Steel Industry in Oman
MUSCAT, JUNE 30 – Meranti Green Steel has appointed the Minerals & Metals division of Indian engineering and construction giant Larsen & Toubro (L&T) to manage the front-end engineering and design (FEED) phase of its green iron project, set to be developed in the Special Economic Zone in Duqm, southeastern Oman.
The initial phase of this project will focus on establishing a facility capable of producing 2.5 million tonnes per annum (Mtpa) of direct reduced iron (DRI) and hot briquetted iron (HBI), with a final investment decision (FID) expected by the end of the third quarter this year.
In a recent announcement, Meranti expressed their satisfaction, stating, “Following a competitive selection process involving leading global firms, we are delighted to partner with Larsen & Toubro as our project delivery partner for the FEED stage of our 2.5 Mtpa DRI/HBI plant in Duqm, Oman. The FEED phase involves detailing the plant’s processes, layout, costs, and schedules, allowing us to minimize risks before construction. L&T’s Minerals & Metals team possesses the vast engineering expertise required for this endeavor.”
L&T is recognized as one of India’s foremost engineering, procurement, and construction (EPC) companies, with operations that extend across multiple sectors, including infrastructure, energy, hydrocarbons, heavy engineering, IT, defense, manufacturing, and services in over 50 countries.
The Minerals & Metals division is a prominent provider of EPC solutions in the mining and metallurgy sectors, undertaking projects related to mineral beneficiation, bulk material handling, pelletization, iron and steel plants, non-ferrous metal processing, alumina and aluminum facilities, cement plants, and related infrastructure.
This announcement marks another significant milestone in the preparation for the smooth implementation of the project, ahead of the anticipated FID next quarter.
Previously, Meranti selected Midrex Technologies, a leader in DRI technology, to provide a hydrogen-ready direct reduction process for the green iron plant, facilitating the gradual replacement of natural gas with green hydrogen as a fuel source. Additionally, engineering and integration of the ironmaking complex using Midrex technology have been assigned to Paul Wurth, a Luxembourg-based metallurgical engineering expert, part of Germany’s SMS group.
KfW IPEX-Bank is serving as the lead arranger for Meranti, while Jebsen & Jessen Industrial Solutions (JJIS) has been designated as a key partner for the project’s export credit agency (ECA)-backed debt financing.
Earlier this year, Meranti disclosed offtake agreements that cover a substantial portion of the plant’s output. Under these agreements, 1.0 Mtpa of HBI will be supplied to Thyssenkrupp Materials Trading, a global industrial materials trader based in Germany, with 0.25 Mtpa committed to INTERFER Edelstahl and INTERFER Austria. The remaining production will be allocated to Glencore, a major Swiss commodity trading and mining firm, as well as to support Meranti’s forthcoming steel plant in Rayong, Thailand, which aims to enhance green hot-rolled coil production.
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الشراكة بين ميرانتي جرين ستيل و Larsen & Toubro signifies a pivotal opportunity for businesses in Oman, particularly in the sustainable energy and green technology sectors. As the project progresses towards its final investment decision, smart investors should consider the growing demand for green steel products, which could unlock new markets and supply chain innovations. However, it also introduces risks related to global market volatility and the need for robust infrastructure to support such large-scale initiatives.
