L&T, Engineers India in spotlight amid Trump’s reported $5 billion Gulf energy fund; what is known so far

Engineering, procurement, and construction (EPC) and energy infrastructure stocks are expected to be in the spotlight.

The proposal could also involve matching contributions from eight Middle Eastern countries, potentially creating a $10 billion fund.

If implemented, the plan could create opportunities for companies involved in engineering, procurement and construction (EPC), pipelines, offshore facilities, gas infrastructure and other energy projects.

The company has recently secured major projects from ADNOC, including an ultra-mega offshore development order, and has ongoing capabilities across offshore facilities, pipelines, gas processing, and other hydrocarbon infrastructure.

The company has already said it expects opportunities from planned pipeline and storage expansion in Saudi Arabia and the UAE aimed at reducing reliance on the Strait of Hormuz.

A push to develop alternative energy transportation routes could potentially generate EPC opportunities in pipelines and related infrastructure for companies with an established regional presence.

The company has an established Middle East presence across transmission and other infrastructure segments, although the potential benefit would depend on the nature and timing of projects that are eventually awarded.

Things to keep in mind

The proposed fund does not mean these companies will immediately receive orders.

The potential read-through is from a possible increase in Middle East spending on pipelines, storage, offshore facilities, and other energy infrastructure, which could expand the addressable market for Indian EPC and engineering companies.