November 14, 2022 [TheEconomicTimes] – Megha Engineering & Infrastructures Limited (MEIL) will build Mongolia’s first oil refinery for the country, the company said today.

MEIL will build EPC-2 (Open Art Units, Utilities & Offsites, Plant Buildings) and EPC-3 (Captive Power Plants) at a cost of $790 million, the company said.

Mongolia is bordered by China and Russia. To lessen its 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), the company said.

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 Limited (EIL) is the Project Management Consultant (PMC) for this 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.”

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, the company said.

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