MONTSAME Mongolian National News Agency interviewed Dr. D. Altantsetseg, the Executive Director of the state-owned company “Mongol Refinery” LLC, Mongolia's Consulting Engineer, about the progress of the Mongol Refinery Project.

The Government of Mongolia is implementing the Project to establish a grass root Oil Refinery Plant based on domestic crude in Dornogobi aimag, located in Southeastern part of the country, within the framework of the soft loan extended by the Government of India to ensure energy independency and expand the industry diversification.

Upon approving the Detailed Feasibility Study and selecting "Engineers India Limited" as Project Management Consultant in 2019, the design and engineering works had started, and from this year on, the mechanical erection of the main technological facilities will start at full capacity.

Out of four main EPC packages planned for the project, the first package, which comprises of non-technological facilities, such as civil buildings (office-training center, first aid center, fire station, warehouse, laboratory, workshop, canteen, 30 thousand cubic meter underground water storage tank) as well as 89 km water pipeline and pump stations, the overhead power transmission line and substations, started in 2021 by an Indian company "JMC Projects India," is preparing for its commissioning this year.

-What difficulties and obstacles have you encountered during the past period, and how are you overcoming them?

-Although the implementation of the project and the works of the first EPC package have gone through serious challenges related to pandemic restrictions, global price increases, transportation and logistical difficulties, we, along with the Contractor "JMC Projects India" and our Project Management Consultant, Engineers India Limited, were able to overcome many obstacles and achieve major milestones during this struggling period. Through relentless pursuit and tireless efforts as well as firm support from the main stakeholder of the project, the Government of India, we managed to push the project from planning and engineering to the actual construction phase. Much effort was devoted towards selecting of the Contractors for EPC 02 and 03 work packages, for which the tender process was conducted since 2021 to attain the best proposal from companies, registered in India, as stated in the Loan Agreement.

EPC 02 package consists of initial processing units, such as Atmospheric and Vacuum Distillation Units, Saturated Gas Plant, and utilities, including tank farms, product dispatching facilities, and the different types of auxiliary and supporting units, whereas a 35 MW Thermal Power Plant would be built as part of the EPC 03 package. "Megha Engineering and Infrastructures Limited," a company from India, was selected as the main Contractor for these two packages and the site work has commenced.

We will produce more high-quality fuel that meets modern standards, including diesel in line with market demand. If the plant works at full capacity, it can process about 1.8 million tons of oil. First of all, it will produce gasoline, as well as 95-octane gasoline, diesel, jet fuel, liquefied petroleum gas, and furnace fuel. It will be the basis for the development of the petrochemical and chemical industry in the future.

Simultaneously, the tender to select the Contractor for EPC 04 package has been ongoing since last year. For the record, the selecting of these contractors and consultants all proceeded in accordance with the stipulations of the Dollar Credit Line Agreement signed between the Government of Mongolia and the Export-Import Bank of India. Moreover, the original provision in the Agreement stipulates the requirement of sourcing more than 75 percent of the goods and services from India for the project. However, in order to reduce the burden as well as the cost and time implications of having such a requirement, the Government of India agreed to reduce it to 50-55 percent. It should be emphasized here that we have huge support and backing from the Government of India and Export-Import Bank of India for this project, which only made it possible to reach this phase of the project.

Dive deeper into the interview of D. Altantsetseg by picking up the latest issue of the “Mongolia Today” magazine.

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