MEIL forays into Mongolia, to build $790-mn oil refinery

Hyderabad: Megha Engineering & Infrastructures Ltd (MEIL) has received the LOA for the MongolRefinery Project, which entails building Mongolia's first oil refinery. According to theEngineering Procurement Construction (EPC) deal, MEIL will build EPC-2 (open art units, utilities & offsites, plant buildings) and EPC-3 (captive power plants) at a cost of $790 million using advanced technology in Mongolia.

The project is part of the development partnership administration initiative of the Ministry of External Affairs (MEA), Government of India. It will be built using a line of credit from the Government of India. Engineers India Ltd (EIL) is the Project Management Consultant (PMC) for this government to government (G2G) project in Mongolia.

Once completed, this will be able to process 30,000 barrels of crude oil per day or 1.5 million tonnes annually. It will lessen the country's dependency on oil imports from Russia. 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."

MEIL, founded in 1989, is one of India's top infrastructure companies with the quickest growth. 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. It has been actively involved in India's nation-building programme. It will continue to impact lives for years to come.