Ulaanbaatar, February 6, 2025 /MONTSAME/ The construction of the first Oil Refinery Plant in Mongolia with a capacity to process 1.5 million tons of crude oil per year is progressing in Altanshireet soum of Dornogobi aimag, financed by a soft loan from the Government of India.

On February 6, 2025, state-owned enterprise “Mongol Refinery” LLC signed an engineering, procurement, and construction contract with India’s "Megha Engineering and Infrastructure Limited" (MEIL), which was selected as the general contractor for the EPC-04 package, construction of the final licensed technological facilities of the oil refinery project.

The oil refinery will have a total of 12 technological facilities, seven of which are deep processing licensed technological facilities. The construction of these seven facilities will be carried out by MEIL under the contract. The deep processing technological facilities will be built under the technological licenses of companies from France, Italy, the United States, and the Netherlands. The patent owners or licensors have completed the design of their technological facilities. Specifically,

Hydrogen plant-Italian “Kinetics Technology”

Sulfur separation -French “Axens”

Gas processing plant-US “UOP Honeywell”

Hydrocracking-US “UOP Honeywell”

Diesel hydrotreating-US “UOP Honeywell”

Liquefied petroleum gas separation -US “UOP Honeywell”

Visbreaking-under license from Dutch “Shell” company.

MEIL, a company with 34 years of experience in implementing major petrochemical and infrastructure projects not only in India but also internationally, will complete the construction of the seven facilities within 36-38 months as stipulated in the contract. The construction of the oil refinery, which is being implemented with a soft loan of USD 1.7 billion from the Government of India, consists of four packages of work including non-technological buildings, atmospheric and vacuum distillation units, saturated gas plant, auxiliary and supporting units, a thermal power plant, and a licensed technological facility.

The first package works which consists of nine facilities, electricity and water supply systems, and infrastructure work on the industrial site have been fully completed and were accepted by the state commission in November 2024. The concrete pouring works for the pipeline trestle and technological furnace foundations of the second and third package facilities have been also completed, and the installation of steel structures will begin soon.

The relevant officials reported that the foundation for the monitoring and substation buildings of the thermal power plant has been poured and the main construction works are almost complete. Currently, more than 1,000 engineers and specialists from Mongolia, India, China, Italy, France, the USA, Canada, the Netherlands, and Spain are working on the oil refinery construction project.