On June 22, Mongolia has embarked on building its first oil refinery, which is financed by India and is meant to reduce the country's dependence on Russian fuel, Reuters reported on Friday.
The refinery, which will be built in Dornogovi province, southeastern Mongolia, will process 1.5 million tons of crude oil per year, Reuters reports citing a press release from Mongol Refinery, the state-owned company implementing the project. As specified, the matter concerns 30,000 barrels per day.
The new refinery will be small according to international standards. Nevertheless, the Mongolian oil refinery, which construction is scheduled to be completed in late 2022, will satisfy all domestic demand for petroleum products.
Last year, Mongolia imported almost 1.5 million tons of oil products and almost all from Russia. According to official data, oil products accounted for 18% of Mongolia's total imports.
