Mongolia has its own oil fields producing enough crude for its requirements. However, almost all of its crude oil is exported and all of its finished petrochemical products are imported. Mongolia imports more than 90% of the oil products from Russia and the remainder from countries such as China, Republic of Korea. To reduce its dependence on imports, the Government of Mongolia has commenced construction of the country’s own refinery, supported by a USD 1.24 billion soft credit line from India. The refinery with an initial capacity of 1.5 million tonnes per annum is being built in Dornogobi province.
According to officials, construction of the refinery will be completed in 2025. Currently, 13 American companies and eight Indian companies are participating in the construction.
Based on survey conducted between 2016 and 2019, approximately 60 percent of the refinery’s production of petroleum products will be diesel. For other fuels, the refinery will refine only gasoline AI-95.
Once ready, the refinery will produce 1.5 million metric tons per annum, with diesel and gasoline as the primary products and liquefied petroleum gas (LPG), fuel oil and jet fuel being produced as secondary products.