Mongolia to build its first oil refineries
Securing domestic production. Following the recent oil shortages in Mongolia, the state is keen to build up domestic production to become less reliable on foreign imports.
The summer of 2011 has been a difficult summer for Mongolian politics, as its economy grows so does interest by jealous neighbours. The functioning of its economy (and its mines) depends on a reliable supply of fuel to allow trains and trucks to ship its resources to its buyers. This supply of fuel has been compromised by the Russian government playing geo-political games in order to exert its influence over Mongolia.
To alleviate the country’s reliance on russia for fuel, the Mongolian government has decided to start construction of 3 refineries so that it may produce up to 70 to 80% of domestic demand. It is hoped that in due time, Mongolia will itself be able to export fuel to other nations.
The first refinery, called “Khet” will have its start-of-construction ceremony today and is expected to be completed in 2015, upon completion it will be able to produce 120 tons of fuel for a duration of 30 years. The construction of the refinery is expected to cost between 35 and 40 billion MNT.
The construction of the other two refineries is also scheduled to start tomorrow, one will be located in Darkhan with a production capacity of 200 thousand tons in co-operation with Mongol Seku LLC and the second will be in the Dorno-Gobi prefecture with a production capacity of 300 thousand tons and will be established in co-operation with Mon L Gas LLC.
Source : M.A.D. News
The summer of 2011 has been a difficult summer for Mongolian politics, as its economy grows so does interest by jealous neighbours. The functioning of its economy (and its mines) depends on a reliable supply of fuel to allow trains and trucks to ship its resources to its buyers. This supply of fuel has been compromised by the Russian government playing geo-political games in order to exert its influence over Mongolia.
To alleviate the country’s reliance on russia for fuel, the Mongolian government has decided to start construction of 3 refineries so that it may produce up to 70 to 80% of domestic demand. It is hoped that in due time, Mongolia will itself be able to export fuel to other nations.
The first refinery, called “Khet” will have its start-of-construction ceremony today and is expected to be completed in 2015, upon completion it will be able to produce 120 tons of fuel for a duration of 30 years. The construction of the refinery is expected to cost between 35 and 40 billion MNT.
The construction of the other two refineries is also scheduled to start tomorrow, one will be located in Darkhan with a production capacity of 200 thousand tons in co-operation with Mongol Seku LLC and the second will be in the Dorno-Gobi prefecture with a production capacity of 300 thousand tons and will be established in co-operation with Mon L Gas LLC.
Source : M.A.D. News
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