Mongolia to open its first oil refinery this April
The construction of an oil refinery at Altan Shiree soum of Dornogovi Province is set to commence in April of 2018, financed with a one billion USD loan from India.
The construction of an oil refinery at Altan Shiree soum of Dornogovi Province is set to commence in April of 2018, financed with a one billion USD loan from India. The oil refinery financed by India is part of Prime Minister Khurelsukh’s Cabinet’s efforts to ensure that Mongolia produces food, energy, and fuel internally. Now that India has essentially guaranteed to finance, the biggest obstacle in building an oil refinery has been addressed. In addition, the prime minister said that a joint task force from the General Intelligence Agency, Independent Authority Against Corruption and the General Police Department will ensure full implementation of the project step by step. Once operational, the refinery in Dornogovi will have a processing capacity of 1.5 million metric tons of oil per year and will annually produce 560,000 tons of gasoline and 670,000 tons of diesel fuel, as well as 107,000 tons of liquefied gas. The refinery could boost Mongolia’s gross domestic product by 10 percent. Engineers India Limited has developed the detailed project report of the refinery while Mongolian Oil Refinery will work as the focal agency of the project. The contractor of the project has not been selected yet, but it is expected to be an Indian company. Mongolian Ambassador to India G.Gabold has said that the government will discuss announcing a tender in both India and Mongolia with the Export-Import Bank of India.