MONGOLIA LAUNCHES CONSTRUCTION OF FIRST OIL REFINERY
Mongolia launched construction of its first oil refinery, a long-awaited project that is funded by India and designed to end the country’s dependence on Russian fuel.
The refinery, in southern Dornogovi province, will be capable of processing 1.5 million tonnes of crude oil per year, said Mongol Refinery, the state-owned company building the project, in a press release. That is about 30 Mbpd. This refinery will be small by international standards, with most Chinese facilities each processing hundreds of thousands of barrels of crude per day, and India’s Reliance Industries running one refinery at a record 1.2 MMbpd.
Still, 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).
“By establishing this strategically important oil refinery, the national economy will become independent from energy imports, and fuel and commodity prices will be stabilized,” said Mongol Refinery in its statement. The project is expected to boost Mongolia’s gross domestic product by 10 percent, it said.
Mongolia imported almost 1.5 million tonnes of oil products last year, virtually all from Russia. They amounted to 18 percent of all Mongolia’s imports, according to official data.
The cost of the refinery is estimated at $1.35 billion, and it will include a pipeline and its own power plant. The refinery will process Mongolia’s own crude oil, which is now sold to China.
Mongolia and its current projects is one of the regions that will be covered in 2018. See the conference agenda: https://www.globuc.com/downstream-centralasia/agenda/