Two. Currently, selection of project monitoring, consulting and implementing agents are expected to be made as time-bound plan goes. On June 22, 2018 ground breaking for the oil refinery is launched in the southern part Mongolia. This GOI funded first ever refinery project in Mongolia is expected to initiate the next industrialization wave in the country. The ground-breaking ceremony was attended by Mongolian Prime Minister Ukhnaa Khurelsukh and Shri Rajnath Singh, Home Minister, GOI, who said, “The refinery would unleash a new page in history of our bilateral relations and cooperation and become an impetus to our Strategic Partnership”. Prime Minister U. Khurelsukh, Mongolia pointed out that “A long standing desire of Mongolians to have indigenous refinery is being realized today with the laying down of its foundation stone. On behalf of all Mongolians and the people who live in Dornogobi province let me extend earnest grateful to Shri Rajnath Singh, Home Minister for his participation to this historic event”.

The oil refinery in southern part of Mongolia at Altanshiree soum of Dornogovi province will occupy 150 hectare of land. The refinery is small by any standards, as India’s similar facility at Panipat, Haryana has estimated capacity of 10 mln tones and Reliance Industries running one refinery at 1.2 mln barrel a day.

However, it will have a capacity of processing 1.5 mln tonnes of crude oil per year (30 thousand barrels) per day which at present is being exported and estimated to have reserve of 40 years.

The cost of the refinery is evaluated as of now $1.23 bln and will have its own 33 MW power plant. The refinery’s financing is part of a $1bln LoC agreement between Mongolia and Export-Import Bank of India. This new project planned for completion in late 2022 will meet most if not all of Mongolia’s need for gasoline, diesel and LPG and reimburse its cost within initial 10 years.