EIL to soon start work on $1.2bn Mongolian refinery project
Decks have been cleared for state-owned Engineers India Ltd (EIL) ...
Decks have been cleared for state-owned Engineers India Ltd (EIL) to begin construction of a petrochemical refinery in Mongolia. EIL, a PSU under the Ministry of Petroleum and Natural Gas, is the project management consultant for the development of the oil refinery. The roadmap for commencing construction of the refinery has been finalized during the visit of India’s federal Minister for Petroleum and Natural Gas, Mr Dharmendra Pradhan. The refinery is being touted as the largest project being undertaken by the Government of India under its Lines of Credit program.
The petrochemical refinery near Sainshand in southern Dornogovi province is to be built at an approximate cost of $1.25 billion. It is being developed under a line of credit of $ 1.236 billion extended by India during Prime Minister Narendra Modi’s visit to Mongolia in 2015 and subsequently enhanced during the state visit of the President of Mongolia Khaltmaagiin Battulga to India in September 2019.
The refinery is expected to be completed by 2022 and will help Mongolia to cut some of its dependence on Russian fuel. Though Mongolia is self-sufficient in oil and has its own oil fields, almost all of its crude oil is exported and all of its finished petrochemical products are imported. The refinery will reduce Mongolia’s import dependence and will ensure energy security for the country.