Mongolia has launched the construction of its first oil refinery funded by India.
In an official statement, the refinery which is located in southern Dornogovi province will be capable of processing 1.5 million tonnes of crude oil each year. That is about 30,000 barrels per day (bpd). The 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 million bpd. 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). The project is expected to boost Mongolia’s gross domestic product by 10 per cent. It should be noted that Mongolia importing almost 1.5 million tonnes of oil products last year, virtually all from Russia. That amounted to 18 per cent of all of Mongolia’s imports.