New Delhi: Engineering company MEIL said on Thursday that it has won an order to build sections of Mongolia's first greenfield oil refinery for USD 790 million. In a statement, MEIL said it has "received the LOA for the Mongol Refinery Project, which entails building Mongolia's first oil refinery." In a bid to cut the dependence on oil imports from Russia, Mongolia is constructing its first greenfield oil refinery called 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.
"As part of the contract, MEIL will build EPC-2 (open art units, utilities and offsites, plant buildings) and EPC-3 (captive power plants) at a cost of USD 790 million using advanced technology in Mongolia," the statement said.
The project is part of the Development Partnership Administration initiative of the Ministry of External Affairs (MEA). It will be built using a line of credit from India.
State-owned Engineers India Limited (EIL) is the project management consultant (PMC) 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 MEIL's expansion strategy in the hydrocarbons sector. In addition, the project will bring economic prosperity and energy independence to Mongolia."
The refinery 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).
Founded in 1989, MEIL is one of India's top infrastructure companies. The company operates in the oil and gas, defence, transport, irrigation, power and telecom sectors.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)