Introduction

Location: near Sainshand in southern Dornogovi province

Owner: Mongol Refinery State Owned LLC

Capacity: 1.5 million tonnes of crude oil per year

Products: diesel and gasoline as the primary products and LPG (liquefied petroleum gas), fuel oil and jet fuel being produced as secondary products

Status: Commencement of the engineering, procurement and construction

Time Line

2017.6: Conclusion of contract on Detailed Feasibility Study (DFS)

2017.11: Completion of Detailed Feasibility Study

2018.2: Basic Design Engineering Package

2018.10: Front End Engineering Design

2019.1: Commencement of the engineering, procurement and construction

2020.1: Middle stage of construction /mechanical completion

2021.5: Commissioning of the structures and facilities

2021.7: Refinery plant testing phase

2021.10: Complete commissioning of refinery plant

The petrochemical refinery -- near Sainshand in southern Dornogovi province -- is to be built at an approximate cost of $1.25 billion utilising the $1 billion line of credit announced during Prime Minister Narendra Modi’s visit to Ulan Bator in 2015. It is expected to be completed by 2022.

When built up, the capacity of the refinery will be 1.5 mmtpa (million metric tons per annum), with diesel and gasoline as the primary products and LPG (liquefied petroleum gas), fuel oil and jet fuel being produced as secondary products.

In Feb,2019,An agreement was inked between the ministry of petroleum and natural gas’s PSU Engineers India Ltd and the Government of Mongolia through Mongol Refinery,EIL will be rendering project management consultancy services to the government of Mongolia to set up an oil refinery plant in Mongolia.