Mongolia to establish oil refinery with help from India

Oyundelger 2016-12-15 11:12

Mining

An oil refinery will be built in eastern Dornogobi aimag in the scope of a general loan agreement between Mongolian government and Export-Import bank of Republic of India for the issuance of US$ 1 bil

Mongolia is to establish oil refinery with help from India. An oil refinery will be built in eastern Dornogobi aimag in the scope of a general loan agreement between Mongolian government and Export-Import bank of Republic of India for the issuance of US$ 1 billion loan. The loan will be spent for oil refinery and oil pipelines. The oil refinery is projected to earn net profit of US$ 43 million annually and planned to recover its investment in 8-10 years. The oil refinery will process US$ 1.5 million oil annually and produce 560 thousand tons of gasoline, 670 tons of diesel fuel, 107 thousand tons of liquefied petroleum gas and other products. With the establishment of the oil refinery, Mongolia will have the oil import decreased by US$ 1 billion and the currency outflow decreased by 20 percent. GDP is expected to be risen by 10 percent while processing industry to be doubled.