Construction of Oil Pipeline for the First Oil Refinery in Mongolia Starts

2023-04-29 12:22:38

Ulaanbaatar, April 26, 2023 /MONTSAME/. The construction of a 530 km oil pipeline that transports crude oil from oil fields in Tamsag basin in Matad soum, Dornod aimag to the first Oil Refinery of Mongolia, which is under construction in Altanshiree soum, Dornogobi aimag has started.

The launching ceremony of the oil pipeline construction took place on April 28 with attendance of Dr. D. Altantsetseg, Executive Director of state-owned company “Mongol Refinery” LLC, Ambassador Extraordinary and Plenipotentiary of the Republic of India to Mongolia Mohinder Pratap Singh, delegates of the Chinese state-owned ‘Norinco International Cooperation’ Co.Ltd and other officials.

The Government of Mongolia is implementing the Project to establish a grass root Oil Refinery Plant within the framework of the soft loan extended by the Government of India to ensure nation’s energy independency and expand the industry diversification. Upon approving the Detailed Feasibility Study and selecting "Engineers India Limited" as Project Management Consultant in 2019, the design and engineering works had started, and now, from this year on, the mechanical erection of the main technological facilities starts at full capacity.

The Government made a decision to transport the raw material of the oil refinery through a pipeline in 2020. As the Chinese state-owned ‘Norinco International Cooperation’ Co.Ltd won the tender to select a contractor to finance and construct the oil pipeline, a cooperation agreement was signed in April 2022.

The crude oil pipeline that pass through nine soums of three aimags, stretching for 530 kilometres is scheduled to be completed in 2025.


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