MEIL’s 3rd Mongolian Venture to Build a $648 Million Crude Oil Refinery Plant, Elevating Cumulative Project Value to $1.436 Billion
Hyderabad-based Megha Engineering and Infrastructures Ltd (MEIL) has secured a monumental contract in Mongolia. Their new deal, valued at USD 648 million, involves the construction of a crude oil refinery plant and marks the company’s third venture in the region.
The contract was signed in a high-profile ceremony in Ulaanbaatar, Mongolia. P Rajesh Reddy, President of MEIL Hydrocarbons, and Altantsetseg Dashdavaa, Executive Director representing Mongol Refinery State Owned LLC, inked the agreement in the presence of PV Krishna Reddy, Managing Director of MEIL.
The cumulative value of these three projects now stands at $1.436 billion.
MEIL’s engagement with Mongolia is nothing new; the latest deal is the third. The company’s inaugural venture involved the construction of Mongolia’s first greenfield Mongol Oil Refinery project, a significant undertaking valued at USD 598.90 million.
Besides, MEIL is also overseeing the construction of EPC-2, which includes open art units, utilities, offsites, and plant buildings. Additionally, MEIL is constructing captive power plants for the EPC-3 phase, valued at USD 189.72 million.
EPC-4 Project:
Under the Engineering, Procurement, and Construction (EPC) deal, the latest project, known as EPC-4, will include:
- A Diesel Hydrotreater Unit (DHDT).
- Hydrocracker Unit (HCU).
- MS Block (NHT/ISOM/SRR).
- Visbreaker Unit (VBU).
- Hydrogen Generation Unit (HGU).
- Sulphur Block (SRU/ARU/SWS).
MEIL will also build utility and offsite facilities, LPG treating units, hydrogen compression and distribution systems, and other enabling facilities like satellite rack rooms and substations.
The refinery project is being worked upon under extreme climatic conditions, with temperatures ranging from -35 degrees Celsius to +40 degrees Celsius.
The Strategic and Socio-Economic Impact
The MELI project will reduce Mongolia’s dependence on Russian oil imports. Upon completion, the refinery is expected to process 1.5 million metric tonnes of crude oil a year and will cater to Mongolia’s domestic demand for petrol, diesel, aviation fuel, and LPG. The project will also generate employment opportunities, support the growth of nearby small industries, and contribute to Mongolia’s economic development.
MEIL holds an AA+ credit rating and is India’s first private company that manufactures advanced indigenous oil drilling rigs globally. The company has a presence in Belgium, Italy, Chile, Houston-USA, and now East Mongolia, further solidifying its position in the global hydrocarbon sector.