On Wednesday, the Mongolian government approved a plan to build the country’s first oil refinery in its southeastern Dornogovi Province. Construction is scheduled to begin in the second quarter of 2018.

The refinery 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 is expected to boost Mongolia’s gross domestic product by 10 percent.

Mongolia currently exports crude oil to China while importing petroleum products from Russia.