KEC sees civil works opportunity in oil & gas sector in absence of IL&FS

With the central government’s thrust on developing a gas-based economy, engineering company KEC International is aiming to tap civil work opportunities in the oil and gas segment. “We are looking at the sector, which will include projects like tankages, related infrastructure and pipelines,” said Vimal Kejriwal, managing director.

 

Union petroleum minister Dharmendra Pradhan said in December that the country was moving to a gas-based economy. He put the investment planned for developing gas-based infrastructure at $60 billion (Rs 4.3 trillion).

 

Kejriwal sees this as an opportune time to enter the oil and gas engineering segment, in the absence of IL&FS and Punj Lloyd. Owing to financial concerns at both these, KEC sees no major company vying for the same set of orders.

 

To test the waters, Kejriwal says they’ll bid for smaller projects worth Rs 50-250 crore. With discussion on gas grids and new refinery complexes, civil orders from this segment should rise.

 

The push to expand India's city gas distribution network is also expected to bring order opportunities. “We will not do the last mile and so will not to do intra city gas distribution infrastructure projects. However, you need to bring gas up to city limits -- that part we are interested in,” Kejriwal added.

 

As of December 2019, its order book was Rs 22,011 crore.

 

In addition to oil and gas, says Kejriwal, "we are looking at steel...after the multiple steel acquisitions at the National Company Law Tribunal (the insolvency resolution forum), there is scope for work to scale up capacities, optimisation and related works”.

 

It will look at international orders in the oil and gas segment at a later stage.