Mongolia looks to develop its downstream oil industry

Oyundelger 2017-03-09 06:03

Mining

A plan to develop oil refining capabilities could see Mongolia enhance its energy security and curb its energy import bill.

Mongolia looks to develop its downstream oil industry. A plan to develop oil refining capabilities could see Mongolia enhance its energy security, curb its energy import bill and broaden the scope of its manufacturing industry.The proposed refinery, to be located in eastern Gobi will have a yearly processing capacity of 1.5m tones. Its output is projected to comprise 560,000 tones of petrol, 670,000 tones of diesel and 107,000 tones of liquefied natural gas.This should meet all of Mongolia’s petrol and diesel needs for the immediate future, with a heavy emphasis on diesel production reflecting a reliance on heavy-duty vehicles, particularly in the extraction sector, which accounts for close to 20% of GDP and more than 80% of exports.