Project Profile
Value: US$1.5 billion
Location: Darkhan city, 140 miles north of Ulan Bator, Mongolia
Capacity: 2 million tonnes of crude oil per year
Start-up Year: Cancelled
The Mongolian government has decided to build the country\'s first oil refinery by 2015. The refinery is planned for Darkhan city, which is located 140 miles north of the capital Ulan Bator. The state-owned refinery in the central Darkhan province would have been built by Toyo Engineering Corporation with Mongolian companies as sub-contractors and it will be able to process two million tonnes of crude oil per year. Mongolia has no oil refining industry. Around 90% of the petroleum products it consumes are imported from Russia.
A feasibility study for the US$1.5 billion refinery was completed November 2013, however, in early 2014, Mongolia\'s National Security Council nixed the plan because of its anticipated dependence on feedstock imports from Russia. An alternative refining proposal has surfaced for the Sainshand district in Dornogovi province. Some US$700 million would be spent on the plant, with another the US$264 million spent on pipelines to funnel crude from local fields.
Operators:
Mongolian Government: Operator with 100% interest
Contractors:
Toyo Engineering Corporation: EPC contract