MEIL wins contract to construct greenfield oil refinery in Mongolia

New Delhi: Megha Engineering and Infrastructure Ltd (MEIL) on Thursday said it has won an order to build sections of Mongolia's first greenfield oil refinery for $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 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 $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), Government of India. It will be built using a line of credit from the Government of India.

State-owned Engineers India Limited (EIL) is the project management consultant (PMC) for this G2G partnership

project.