Mongolia – Mongolia’s first oil refinery, a long-awaited project that is funded by the Export-Import Bank of India (Exim Bank), is expected to be completed by 2025.
Executive Director of the Mongolian Oil Refinery D.Altantsetseg said the refinery, in southern Dornogovi province, would be capable of processing 1.5 million tonnes of crude oil per year.
“Although its capacity is small in comparison to similar international factories, it has its own unique characteristics. We are building on the steppe,” D.Altantsetseg added.
Deputy Minister of mining and heavy industry O.Batnairamdal said the plant would provide Mongolia with 55-60 percent of its domestic oil production.
JMC Projects India has been selected as a general contractor in charge of the first phase of the oil refinery construction while Engineers India Limited, a state-owned Indian firm, has served as a Project Management Consultant.
The deputy said that this is an important step in achieving the economic independence of Mongolia because locally produced oil will not be directly affected by fluctuations in oil prices in foreign markets.
“Construction has begun on a 1.2 billion percent soft loan from the Indian government. We are not immune to the scourge of transportation and logistics,” said O.Batnairamdal.
The planning and design phase of the Mongolian oil refinery project started in 2019. Two years later, they moved on to the construction work.