Ulan Bator, May 14 - Neftegaz.RU. The construction of Mongolia's 1st oil refinery will begin in its southeastern Dornogovi Province in the 3rd quarter of 2018, the country's Ministry of Mining and Heavy Industry reported.
The project will be completed by 2022, according to Dolgorsuren Sumiyabazar, minister of Mining and Heavy Industry.
Supported by a $1 billion soft credit loan to Mongolia from India announced in May 2015, the new refinery comes as part of India’s effort to develop further ties with the landlocked country and help reduce its energy dependence on neighboring China and Russia.
The refinery will have a processing capacity of 1.5 million metric tons of oil per year and will annually produce 560,000 tons of gasoline and 670,000 tons of diesel fuel, as well as 107,000 tons of liquefied gas. The refinery would boost Mongolia's gross domestic product by 10 %.
Engineers India Ltd. has been selected to deliver the detailed project report for construction of the refinery, which will be operated by a public company and could boost Mongolia’s GDP by 10 %.
Alongside building the refinery, state-owned enterprises and organizations will also work on the construction of an electric power transmission line as well as 20 km of railway and roadway to connect the manufacturing site to nearby Sainshand.
