Megha Engineering -; Infrastructures Limited to build Mongolia's first oil refinery

4 Nov 2022 , 09:08 AM

Megha Engineering & Infrastructures Limited (MEIL) announced today that it will construct Mongolia’s first oil refinery.

According to the business, MEIL will spend $790 million to construct EPC-2 (Open Art Units, Utilities & Offsites, Plant Buildings) and EPC-3 (Captive Power Plants).

The nations of China and Russia border Mongolia. The nation is building the Mongol Refinery, its first greenfield oil refinery, to reduce its reliance on oil imports from Russia.

The refinery’s operations include a pipeline and a power plant. Once finished, this refinery will have the capacity to process 1.5 million tonnes of crude oil yearly, or 30,000 barrels.

According to the corporation, this will lessen Mongolia’s reliance on Russian fuel and assist the nation in meeting its needs for petroleum products like gasoline, diesel, aviation fuel, and liquefied petroleum gas (LPG).

The project is a component of the Development Partnership Administration programme of the Indian government’s Ministry of External Affairs (MEA). A line of credit from the Indian government will be used to finance its construction.

The project management consultant (PMC) for this partnership project is Engineers India Limited (EIL).

According to the corporation, this refinery will create a number of jobs over the coming years, assisting the expansion of surrounding small businesses and fostering Mongolia’s economic progress.

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