The Chinese company China National Chemical Engineering & Construction Corporation Seven Ltd (CC7) has expressed interest in launching the production of gasoline, diesel fuel, and synthetic natural gas using brown coal in Mongolia.
During the official visit of the Speaker of the Parliament, Uchral Nyam-Osor, to China on March 24, 2026, the Minister of Industry and Mineral Resources, Damdinnyam Gongor, met with representatives of CC7 to discuss cooperation opportunities for the project to create synthetic natural gas from coal, as reported by MiddleAsianNews.
At the meeting, CC7 presented a preliminary feasibility study, stating an investment profitability range of 13-16% and a payback period of 7 to 9 years, as well as expressing readiness for further cooperation.
This project, aimed at reducing Mongolia's dependence on fuel imports and increasing the added value of coal, involves an investment of $1 billion and will be implemented in the Baganuur region. It is expected to produce 200-300 thousand tons of gasoline and diesel fuel, as well as 150-200 million Nm³ of synthetic natural gas annually using proven technologies such as CTL+SNG gasification, Fischer-Tropsch synthesis, and methanation.
The parties discussed that this project fully aligns with the intention to create an industrial and technological park based on the Baganuur mine, as outlined in the strategic documents of the Mongolian government. The implementation of this initiative could significantly help address several issues, including the development of the chemical industry, meeting the needs for petroleum products and nitrogen fertilizers, as well as reducing air pollution.
