Mongolia recently held a ground-breaking ceremony for the construction of its first oil refinery. The ground-breaking ceremony was attended by the Mongolian Prime Minister, and the Indian Minister of Home Affairs.
Located in Altanshiree Soum in the southeastern province of Dornogovi, the refinery covers an area of 150 hectares and is designed to process shale crude. It will include a pipeline and will have its own power plant.
The refinery project is reportedly funded by the Indian Government and is designed to end Mongolia’s dependence on fuel imports from neighbouring countries.
In addition to meeting Mongolia’s demand for refined products, the new refinery expected to boost the Country’s gross domestic product by up to 10%.
Known for its vast, rugged landscapes and nomadic culture, Mongolia has a small population of about 3 million, and is wedged between China and Russia. Oil production levels remain low in the country as it hopes to attract investments from established players.