Damdiny Ghongor, Minister of Industry and Mineral Resources, held discussions on the prospects for long-term cooperation with China in the field of natural resources. During the meetings, important issues were addressed, including technology transfers, investment opportunities, and the protection of enterprises through the investment insurance mechanism.
“A key point achieved during the visit was obtaining a new exploration license for the Chinese company PetroChina. This is the most significant investment from China in our country. Oil production began in the 1990s, and this company is capable of fully supplying our oil industry with the necessary resources,” Ghongor noted.
“The parties agreed on joint efforts to enhance exploration activities and create reserves necessary for the sustainable supply of raw materials to the oil industry. A preliminary agreement was also reached on a long-term contract for the purchase of petroleum products, including gasoline and diesel fuel, from the neighboring country at fixed volumes and competitive prices.”
“It is important to discuss fuel standards. There are Euro-2, Euro-3, Euro-4, Euro-5, and Euro-6. Our country consumes 240,000 tons of petroleum products monthly, of which 60,000 tons, or a quarter, is imported from Russia in the form of AI-92 gasoline, which meets the Euro-2 standard,” the minister added.
“Euro-2 standard gasoline has a high sulfur content and negatively affects the ecology and human health. In contrast, Euro-5 standard products cause less harm. The Ministry of Environment has decided to transition to Euro-5 standard fuel in Ulaanbaatar starting in mid-2026. This decision requires joint efforts for implementation. The Euro-5 standard is already being used widely,” the minister stated.
“Only Kyrgyzstan and Mongolia receive Euro-2 standard gasoline from the Angarsk plant in Russia. Therefore, we must gradually transition to the Euro-5 standard,” Ghongor emphasized.
“The decision to introduce the Euro-5 standard in Ulaanbaatar starting in June was made jointly by the city administration and the Ministry of Environment. We are in the process of preparing for its implementation. As importers, we expect that the issues of implementing the standard norms will be resolved at the level of city authorities and the ministry,” he added.
“It is important to provide our oil refining industry with the necessary resources. Once the new plant is operational, it will be able to meet 50% of the country's needs and will produce Euro-5 standard products. Political decisions need to be made to ensure this industry has raw materials. Therefore, the company 'Petrochina Dachin Tamsag' will conduct additional geological exploration in our country.”
