Four years ago, the government of Mongolia approved the project to create the first major oil pipeline in the country.
It was planned to build a 530-kilometer pipeline that would connect the Tamsag basin with the Matad and Khalkhgol sums in the Dornod aimag and then proceed to Dornogovi, with a total budget of 388 million dollars.
The general contractor for the project is the Chinese company Norinco International Cooperation, which began work in June 2022. The contract for the construction of the pipeline was signed for three years, until the commissioning of the first oil refinery in the country. The cost of the pipeline project is 380 million dollars, and payment will be made in coal.
Despite the work done, the pipeline construction project is not yet completed.
The Minister of Industry and Mineral Resources, Damdinyam Gongor, commented on the situation, stating: "The completion of the work is approaching; however, delays have been caused by the COVID-19 pandemic and the need for additional funding."
"The construction of the first oil refinery is actively continuing. Four months ago, its readiness was over 20%, and today this figure has exceeded 50%. After the construction is completed, the plant will be able to produce 1.5 million tons of petroleum products per year and fully or partially meet Mongolia's domestic fuel needs. This will create about 1500 new jobs," he noted.
S.Maidar Tatar
source: MiddleAsianNews
