Indian-backed oil refinery in Mongolia should begin operations in 2028
An Indian-backed oil refinery in Mongolia is expected to begin operations in 2028, India's foreign ministry said on Tuesday, adding that the Mongolian authorities also want Indian firms to explore for oil and gas in the country.
The announcement was made during Mongolian President Khurelsukh Ukhnaa's visit to India. Mongolia's first oil refinery is being built with a $1.7-B Indian line of credit and will have the capacity to process 1.5 metric MMtpy of crude oil, or 30,000 bpd.
"The refinery equipment is being manufactured in India and will be shipped to Mongolia," said P. Kumaran, an Indian foreign ministry official. "It seems to be on track. And we expect that by 2028 the refinery should be operational," he told reporters.
India is also looking to import coking coal from the land-locked country wedged between Russia and China, Kumaran said. Russia and Mongolia have a discount deal for Mongolian goods transiting through Russia via its railway and seaports, he added.
"We are also trying to get more details to see if we can take advantage of the discount arrangement that is available between Mongolia and Russia," Kumaran said.
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