Business Companies 03 Nov 2022 MEIL forays into Mon ...

MEIL forays into Mongolia with country’s first greenfield oil refinery

DECCAN CHRONICLE. | DECCAN CHRONICLE
Published Nov 3, 2022, 5:42 pm IST
Updated Nov 3, 2022, 5:42 pm IST
The project is part of the Development Partnership Administration initiative of the Ministry of External Affairs. (Photo By Arrangement)
 The project is part of the Development Partnership Administration initiative of the Ministry of External Affairs. (Photo By Arrangement)

HYDERABAD: Megha Engineering & Infrastructures Limited (MEIL) has received the LOA for the Mongol Refinery Project, which entails building Mongolia's first oil refinery.

MEIL will build EPC-2 (Open Art Units, Utilities & Offsites, Plant Buildings) and EPC-3 (Captive Power Plants) in Mongolia at a cost of USD 790 million using advanced technology.

The project is part of the Development Partnership Administration initiative of the Ministry of External Affairs (MEA) and it will be built using a line of credit from the Indian government. Engineers India Limited (EIL) is the project management consultant for this G2G partnership project.

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.”

The greenfield oil refinery is being constructed by Mongolia to lessen the country’s dependency on oil imports from Russia. Once completed, the refinery will process 30,000 barrels of crude oil per day or 1.5 million tonnes annually. In the years to come, this refinery will also open up a number of employment opportunities, supporting the growth of nearby small industries leading to Mongolia's economic development.

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