Mongolia launched construction of its first oil refinery last year. This has been a a long-awaited project; currently it is being funded by India and is designed to end the country’s dependence on Russian fuel imports.
Earlier today (2 October), the Cabinet decided to expand a land around where the oil refinery is being constructed. According to one source, the land, set aside by the government for special construction and infrastructure requirements has been expanded from 150 hectares to 405 hectares.
Currently, construction is underway of a 27 km-long railway and 18.8 km road connecting Sainshand, the administrative centre of Dornogobi Province to the oil refinery; the power lines and other infrastructure requirements are completed. To rationalize power generation needs there will be a pipeline from the refinery to its own power plant.
The refinery, in southern Dornogovi Province will be capable of processing 1.5 million tonnes of domestic crude oil per year. This is equivalent to about 30,000 barrels per day (bpd). The cost of the refinery is estimated at USD 1.35 billion.
Mongolia’s new refinery, planned for completion in late 2022, will meet all of the nation’s demand for gasoline, diesel, aviation fuel and liquefied petroleum gas (LPG).