By Ashoke Raj

New Delhi [India], November 3 (ANI): In a major development to lessen Mongolia's oil imports from Russia, an Indian company is all set to build the first greenfield oil refinery in the capital Ulaanbaatar.

Also Read | Imran Khan, Former Pakistan PM Receives Bullet Injury After Unknown Gunmen Open Fire on His Container: Report.

India's Hyderabad-based Megha Engineering and Infrastructures Limited (MEIL) has received the letter of authorisation for the Mongol Refinery Project, which entails building Mongolia's first oil refinery in the country.

The company will build EPC-2 (Open Art Units, Utilities & Offsites, Plant Buildings) and EPC-3 (Captive Power Plants) at a cost of USD 790 million using advanced technology in Mongolia.

Also Read | Pakistan Tehreek-E-Insaf Chief Imran Khan's Long March Enters 7th Day As Party Keeps Government Guessing.

The project is part of the Development Partnership Administration initiative of the Ministry of External Affairs (MEA), Government of India. It will be built using a line of credit from the Government of India.

In the years to come, this refinery will open up a number of employment opportunities, supporting the growth of nearby small industries, and thereby leading to Mongolia's economic development.

"This downstream project is of enormous importance and marks a critical turning point in the relationship between India and Mongolia and in MEIL's expansion strategy in the hydrocarbons sector. In addition, the project will bring economic prosperity and energy independence to Mongolia," a top MEIL official told ANI.

"Engineers India Limited (EIL) is the Project Management Consultant (PMC) for this G2G partnership project," it added.

The project aims at lessening Mongolia's dependency on oil imports from Russia. Mongolia is constructing its first greenfield oil refinery -- the Mongol Refinery.

A pipeline and a power plant are part of the refinery's operations. Once completed, this refinery will be able to process 30,000 barrels of crude oil per day or 1.5 million tonnes annually.

This will reduce Mongolia's dependency on Russian fuel and will help the country meet its needs for petroleum products like gasoline, diesel, aviation fuel, and liquefied petroleum gas (LPG). It's being seen as a major step amid the crisis because of the Russia-Ukraine war and the cost of oil shooting up manyfold. (ANI)

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)