Mongolia’s first oil refinery is being developed under a government-to-government (G2G) partnership between Mongolia and India. The project is estimated to cost around USD 790 million, which will be financed through a line of credit from the Government of India.

Under the EPC deal, India-based Megha Engineering and Infrastructures  will build open art units, utilities and offsites, along with plant buildings, and captive power plants for the refinery.

The project, which is the first greenfield oil refinery in Mongolia, includes a pipeline and a power plant as part of its operations.

The refinery will have the capacity to process 30,000 barrels of crude oil per day or 1.5 million tonnes per annum.

The project is anticipated to create several employment opportunities, and support the local small-scale industries, boosting Mongolia’s economic development.

Furthermore, it is expected to reduce Mongolia’s dependency on oil imports from Russia, and help meet its needs for petroleum products like gasoline, diesel, aviation fuel, and LPG.