MEIL Secures third project in Mongolia - PRN India News

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MEIL Secures third project in Mongolia

MEIL secures USD 648 million contract in Mongolia
Will construct state-of-the-art crude oil refinery plant
The new venture marks the company's third project in the region

HYDERABAD, India and ULAANBAATAR, Mongolia, Sept. 29, 2023 /PRNewswire/ -- Hyderabad-based engineering firm Megha Engineering and Infrastructures Limited (MEIL) has clinched a significant deal in Mongolia. The company received a Letter of Agreement (LOA) for constructing a state-of-the-art crude oil refinery plant valued at USD 648 million from Mongol Refinery State Owned LLC.

Today, MEIL hydrocarbons president Mr. P. Rajesh Reddy and Dr. Altantsetseg Dashdavaa, executive director representing the Mongol Refinery State Owned LLC, inked the new project in a contract signing ceremony at Ulaanbaatar in Mongolia. MEIL Managing Director Mr. P.V. Krishna Reddy, top officials, dignitaries, and representatives from both countries attended the event.

Speaking at the signing event, MEIL Managing Director Mr. P.V. Krishna Reddy said, "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."

MEIL's inaugural venture in Mongolia involves the construction of the country's first greenfield Mongol Oil Refinery project, a significant undertaking. Within this refinery, MEIL is overseeing the construction of EPC-2, which encompasses Open Art Units, Utilities, Offsites, and plant buildings valued at USD 598.90 million. Additionally, MEIL is constructing captive power plants for the EPC-3 phase, valued at USD189.72 million. The company is using cutting-edge technology in the construction of all the projects. The value of the new EPC-4 project is USD 648 million. The total value of the three projects now is USD 1.436 billion.

Mr. P.V. Krishna Reddy added, "MEIL has a robust and comprehensive presence in all the sectors that form the backbone of modern society along with delivering end-to-end solutions. The projects we undertake are instrumental in shaping economic and social outcomes. As we embark on the EPC-4 construction of the crude oil refinery at the Mongol refinery, it signifies India's commitment to supporting Mongolia's economic growth and energy security and showcases the collaborative spirit between India and Mongolia."

The significance of the new project extends beyond its financial value. It will diminish 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.

In the Engineering, Procurement, and Construction (EPC) deal of the USD 648 million project, MEIL will build the following components in EPC-4 Diesel Hydrotreater Unit (DHDT), Hydrocracker Unit (HCU), MS Block (NHT / ISOM / SRR), Visbreaker Unit (VBU), Hydrogen Generation Unit (HGU), Sulphur Block ( SRU / ARU / SWS), LPG treating unit, hydrogen compression and distribution â€“ matching, plant buildings- satellite rack rooms and sub-stations. In addition, MEIL will also build utility and offsite facilities and other enabling facilities.

This Mongol 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.

With an AA+ robust credit rating, MEIL is India's first private company that manufactures advanced indigenous 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.

The Mongol Refinery is a challenging project, and it is being executed under extreme climatic conditions, with temperatures ranging from (-) 35 degrees C to (+) 40 degrees C.

About MEIL

Megha Engineering and Infrastructures Ltd. (MEIL), founded in 1989 is one of India's top infrastructure companies with the quickest growth. It has made its mark across 20 countries in the last three decades. The company operates in the sectors of Oil and Gas, Defence, Transport, Irrigation, Power and Telecom. MEIL has been actively involved in India's Nation-building programme. Nation first has been its motto since its inception. It has built some of India's iconic projects over the years. Each of these projects has significantly impacted the quality of lives of people and will continue to impact lives for years to come.

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