MEIL to build Mongolia’s first oil refinery
Megha Engineering & Infrastructures Limited (MEIL) has received the letter of acceptance (LOA) for the Mongol Refinery Project, which entails building Mongolia’s first oil refinery. According to the EPC deal, MEIL will build this new refinery in Mongolia.
MEIL will build EPC-2 (open art units, utilities and offsites, plant buildings) and EPC-3 (captive power plants) at a cost of $790 million (about Rs 6,400 crore) using advanced technology in Mongolia. The project is part of the Development Partnership Administration initiative of the Ministry of External Affairs (MEA) of the Government of India. It will be built using a line of credit from the Government of India.
Engineers India Limited (EIL) is the project management consultant (PMC) for this G2G partnership project. In the years to come, this refinery will open up a number of employment opportunities, supporting the growth of nearby small industries, and thereby leading to Mongolia’s economic development.
According to MEIL’s spokesperson, “This downstream project is of enormous importance and marks a critical turning point in the relationship between India and Mongolia and in MEIL’s expansion strategy in the hydrocarbons sector. In addition, the project will bring economic prosperity and energy independence to Mongolia.”
To lessen Mongolia’s dependency on oil imports from Russia, the country is constructing its first greenfield oil refinery – the Mongol Refinery. A pipeline and a power plant are part of the refinery’s operations. Once completed, this refinery will be able to process 30,000 barrels of crude oil per day or 1.5 million tonnes annually. This will reduce Mongolia’s dependency on Russian fuel and will help the country meet its needs for petroleum products like gasoline, diesel, aviation fuel, and liquefied petroleum gas (LPG).
MEIL, founded in 1989, is one of India’s top infrastructure companies. It has made its mark across 20 countries in the last three decades. The company operates in the sectors of oil and gas, defence, transport, irrigation, power and telecom, according to a release.
