India has already committed US$ 1 billion. The facility in Dornogovi province, which will be operational in 2022, is a fundamental asset for the Asian country, big in size but with a small economy. India is happy with the venture.
Ulaan Baatar (AsiaNews/Agencies) – The Indian government has allocated another 236 million dollars to speed up the construction of Mongolia’s first oil refinery, said Mongolian Prime Minister Ukhnaa Khurelsukh during a ceremony commissioning the first infrastructure facilities in the south-eastern Dornogovi province.
The project was announced in 2015 during a visit by Indian Prime Minister Narendra Modi to Mongolia with India committing a US$ 1 billion to the refinery.
"Taking this opportunity, I would like to thank Indian government and its people for helping Mongolia," added the prime minister.
"I'm happy to share that on Mongolian request, India has announced an additional 236 million US dollars line of credit from India," said Dharmendra Pradhan, India's Minister of Petroleum and Natural Gas.
Pradhan said that Engineers India Limited is providing project management consultancy services for this refinery project.
On completion, the facility will meet about three-fourth of Mongolian oil requirement, he added in his statement.
The refinery is expected to be completed by 2022, reaching a processing capacity of 1.5 million metric tonnes of oil per year.
It will annually produce 560,000 tonnes of gasoline and 670,000 tonnes of diesel fuel, as well as 107,000 tonnes of liquefied gas.
The refinery is set to boost Mongolia's gross domestic product by 10 per cent.