MEIL bags USD 648 million contract to establish refinery plant in Mongolia

MEIL managing director PV Krishna Reddy said that the company’s new venture marks its third foray into the region.

Published: 30th September 2023 09:51 AM  |   Last Updated: 30th September 2023 09:51 AM   |  A+A-

By Express News Service

HYDERABAD: Hyderabad-based engineering firm Megha Engineering and Infrastructures Limited (MEIL) has clinched a deal in Mongolia. The company received a letter of agreement (LOA) for constructing a state-of-the-art crude oil refinery plant valued at $648 million from Mongol Refinery State Owned LLC.MEIL hydrocarbons president P Rajesh Reddy and Altantsetseg Dashdavaa, executive director representing the Mongol Refinery State Owned LLC, inked the new project at Ulaanbaatar in Mongolia on Friday.

MEIL managing director PV Krishna Reddy said that the company’s new venture marks its third foray into the region. It involves the construction of the country’s first greenfield Mongol Oil Refinery project, a significant undertaking. Within this refinery, MEIL is overseeing the construction of EPC-2, which encompasses open art units, utilities, offsites, and plant buildings valued at $598.90 million. Additionally, MEIL is constructing captive power plants for the EPC-3 phase, valued at $189.72 million, $648 million for the new EPC-4 project. The company is using cutting-edge technology in the construction of all the projects.

The MD further said that the new project would diminish Mongolia’s heavy reliance on Russian oil imports, enhance its energy security and reduce its vulnerability to fluctuations in international oil markets. This Mongol Refinery project is a Government-to-Government (G2G) initiative. According to a release from MEIL, after completion, the refinery is expected to produce 1.5 million tonnes of crude oil annually, catering to Mongolia’s domestic demand for gasoline, diesel, aviation fuel, and LPG. The challenging project is being executed under extreme climatic conditions, with temperatures ranging from (-) 350C
to (+) 400C.

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