Media: Mongolia will build the first large oil refinery

BEIJING, February 3. The Mongolian government has decided to build an oil refinery and pipeline in North-East of the country. As reported on Wednesday, the radio station “Voice of Mongolia”, this step is aimed primarily at a systematic reduction of dependence on imports of petroleum products.

The country’s first large plant for refining oil will be located in the North-East of the aimag (province) Henty. “The construction site is selected on the basis of proximity to oil fields, the availability of the necessary infrastructure, as well as the possibility of transportation of crude oil and finished products to the end consumers”, – stated in the message.

Object input in operation is expected in 2021, which, according to Ulan Bator, will reduce the volume of imports of petroleum products in and out of dependence on foreign suppliers will positively affect foreign trade balance, and create new jobs. Responsible for the implementation of this large-scale project appointed Minister of industry Dendoggone Erdenebat.

Now in Mongolia there are no major oil production, in connection with the main fuel supply is carried out from Russia, mainly from the Irkutsk region. At the same time, the Council on mineral resources of the country total assessed significant hydrocarbon reserves on the territory of Mongolia is 1.6 billion tons, and experts from the American company Sovereign Exploration Associates International, in 4-5 billion tons.

According to the forecasts of local economists, the development of discovered fields will enable to provide the energy needs of the country for the next 40-50 years rate of 600 thousand tons per year.