Ulaanbaatar, September 14, 2024 /MONTSAME/. Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai visited Dornogobi aimag on September 13, 2024, to inspect the progress of the construction of the oil refinery plant.

The construction of the oil refinery plant, a high-tech, heavy industrial complex within the framework of economic cooperation between Mongolia and the Republic of India, began in 2021. Despite challenges such as the global pandemic, economic crisis, and transportation delays, the construction work is continuously underway.

"Mongol Refinery" LLC is carrying out projects such as the oil refinery plant, crude oil pipeline, external infrastructure facilities for the plant, and the "Oil Refinery Township."

D. Altantsetseg, the CEO of the company, provided information about the step-by-step implementation of the “Oil Refinery Plant Construction Project,” which is planned to be commissioned in 2027. She also discussed issues that need to be resolved at the parliamentary and government levels during the construction process.

The discussion touched on several topics, including the need for the State Great Khural of Mongolia to approve an additional concessional loan agreement from the Indian Government, creating conditions to sign the EPC 04 Working Package contract, changing customs regulations for equipment imports, offering visa concessions for foreign workers, negotiating raw material supplies, and ensuring a stable supply of crude oil.

Administrators of project implementing companies and general contractors informed the Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai that the construction plan for the oil refinery plant is divided into four parts, and presented the progress on EPC 01, EPC 02, EPC 03 Working Packages, and the mechanical assembly of oil pipelines. 

Indian companies carry out the EPC 01, EPC 02, and EPC 03 Working Packages while assembling the pipelines is performed by companies from the People’s Republic of China. With companies from countries such as Italy, France, Germany, Great Britain, the United States, Canada, Netherlands, Spain, and China participating in engineering and construction works in this major project, the Oil Refinery Plant Construction Project can be duly considered an international effort. Currently, 1300 engineers and technical workers from foreign countries are working at the plant site.

Non-technological facilities such as 11 living quarters and water supply systems construction are being completed and presented to the National Commission of Mongolia in phases. 

Aside from the oil refinery plant, the construction work for an oil pipeline is being successfully implemented in Mongolia, which began in April 2023. Detailed design and engineering work for the oil pipeline is being done by the Canadian “Worley Parsons” Company, while the Italian “Prometheus” Company is providing construction oversight service. The general contractor for the construction of the pipelines is “Norinco International Cooperation Company” of China.

Today, 430 km of oil pipelines have been welded and assembled, with radiograph interpretation, ultrasound, and magnetic particle tests having been conducted. The 530 km long oil pipeline running from the oil fields of Dornod aimag to the oil refinery plant is planned to be completed in the third quarter of 2025. 

Prime Minister Oyun-Erdene noted that the oil refinery plant is one of the 14 mega projects to be implemented by the Joint Government and that the commissioning of the plant will end Mongolia’s dependency on imported fuel and petroleum products and establish a new sector of petroleum-chemical manufacturing sector. The Prime Minister visited Altanshiree soum when the EPC 03 Working Package commenced and the Government made several decisions on the matter. He emphasized that the EPC 04 Working Package, which is integral to the oil refinery project, should be commenced urgently, and that any issues will be negotiated with the Government of India and discussed in the Autumn Session of the State Great Khural. Prime Minister Oyun-Erdene underlined the Government of Mongolia will pay special attention to the successful implementation of the highly strategic project.