In Mongolia, the construction of the first large oil refinery is underway in the Altanshireet sum of Dornogov, financed by a concessional loan of approximately $1.7 billion from the Export-Import Bank of India.
Currently, 50 percent of the project work has been completed, and the construction of the oil pipeline is nearing completion at 90 percent, reported Altantsetseg Dashdavaa, the executive director of LLC "Mongolian Oil Refinery".
According to the intergovernmental agreement, the plant is expected to start operations in 2028. However, thanks to the efforts of the government and the Ministry of Industry and Mineral Resources, the commissioning date may be shortened by a year.
According to the Minister of Industry and Mineral Resources Damdinyam Gongor, Mongolia was previously 95% dependent on fuel supplies from Russia and 5% from China. "The construction of our plant is a step towards reducing this dependency. After it is commissioned, we will be able to meet about 50% of the domestic demand for petroleum products. However, the main task now remains to ensure the supply of raw materials. We plan to negotiate with PetroChina to address this issue," he added.
Currently, the construction of pipeline trestles for primary processing has been completed, as well as the concreting of foundations for atmospheric and vacuum distillation. At the same time, installation work continues in buildings, substations, and auxiliary facilities.
Additionally, the construction of the tank farm, pipeline trestles, and foundations for the power plant is nearing completion. Most of the technological equipment is being produced by nearly 20 Indian companies and is ready for shipment by sea to Mongolia.
The main technological units, such as the units for separating propane and butane, stabilizing naphtha, as well as absorbers and deethanizers, are being produced by the Indian company Sudhir Brothers Company in Mumbai and are undergoing all necessary quality tests. Some of the equipment will be ready for shipment in January 2026 after anti-corrosion treatment.
The production of purification units and filters for the plant's water treatment system is also nearing completion. These sets are planned to be transported to Mongolia between January and April 2026 after the mechanical assembly is completed.
Tatar S.Maidar
source: MiddleAsianNews
