Mongolia to build first oil refinery with help from India
launched construction of its first oil refinery. This long-awaited project is funded by India and is designed to end the country’s dependence on imported fuels. The 30mbpd refinery will be capable of processing 1.5 million tonnes of crude oil per year.
The 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 self sufficient in its energy needs, and fuel and commodity prices will be stabilized. The project is expected to boost Mongolia’s gross domestic product by 10 percent.
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.