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MEIL bags $648 mn contract for refinery project in Mongolia www.livenmints.com
New Delhi: Megha Engineering and Infrastructures Ltd. (MEIL) has bagged a contract for $648 million in Mongolia. The order is for the third project under the Mongol Refinery, according to a statement from the Hyderabad-based engineering firm, for which it has received a letter of agreement (LoA) from Mongol Refinery State-Owned LLC.
This refinery project is a government-to-government (G2G) initiative. Upon 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.
On Friday, MEIL hydrocarbons president P. Rajesh Reddy, and Altantsetseg Dashdavaa, executive director representing the Mongol Refinery State Owned LLC, inked the new project in a contract signing ceremony at Ulaanbaatar in Mongolia.
“For MEIL, which holds a prominent position in the global hydrocarbon sector, with a presence across upstream, midstream, and downstream operations and a track record of delivering onshore and offshore projects worldwide, the new venture marks the company’s third foray into the region," Reddy said.
MEIL’s first venture in Mongolia involves the construction of the country’s first greenfield Mongol Oil Refinery project. 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.
The total value of the three projects now is $1.436 billion.
According to the MEIL statement, the new refinery will reduce Mongolia’s heavy reliance on Russian oil imports, enhance its energy security and reduce its vulnerability to fluctuations in international oil markets. In addition, it will generate employment opportunities, bolster the growth of nearby small industries, and contribute to Mongolia’s economic development in the future, it said.
In the engineering, procurement, and construction (EPC) deal of the $648 million project, MEIL will build diesel hydrotreater unit (DHDT), and a hydrocracker Unit (HCU), visbreaker unit (VBU), hydrogen generation unit (HGU), sulphur block, LPG treating unit, hydrogen compression and distribution – matching, plant buildings- satellite rack rooms and sub-stations, among others.
In addition, MEIL will also build utility and offsite facilities and other enabling facilities.
MEIL already has a global presence as it manufactures advanced oil drilling rigs globally. It has its presence in Belgium, Italy, Chile, Houston-USA, and now East Mongolia.
In the hydrocarbon sector, the company takes up designing, procuring, and constructing vital facilities such as separation units, crude distillation and desalting plants, gas dehydration facilities, gas compression installations, gas power generation setups, storage tank systems, hydrocarbon effluent treatment solutions, and both structural and process plant piping, among other critical components.
State-run EIL is the project management consultant for the Mongol refinery project.
In an interview to Mint in April, the ambassador of Mongolia to India, Dambajav Ganbold, had said that Mongolia’s first oil refinery, built and funded with Indian assistance, will be completed by 2025.
Published Date:2023-10-01
