MEIL Managing Director PV Krishna Reddy along with officials of Mongol Refinery State Owned LLC in Mongolia on Friday
Credit: Special arrangement
Hyderabad based engineering and infrastructure conglomerate 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 $648 million from Mongol Refinery State Owned LLC.
On Friday, MEIL hydrocarbons president 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 PV Krishna Reddy, top officials, dignitaries, and representatives from both countries attended the event.
Speaking at the signing event, MEIL Managing Director 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. Within this, 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 company is using cutting-edge technology in the construction of all the projects. The value of the new EPC-4 project is $648 million. The total value of the three projects now is $1.436 billion.
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.
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.
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.