Damdiny Gongor, the Minister of Industry and Mineral Resources, discussed the prospects for long-term cooperation with China in the field of natural resources. During the negotiations, issues of technology transfer, attracting investments, and ensuring the protection of enterprises through an investment insurance mechanism were considered.
“A key point of the visit was obtaining a new exploration license for PetroChina, which is the largest investment initiative from China in our country. Oil production began in the 1990s, and this company is fully capable of supplying our oil industry with raw materials,” noted Gongor.
“The parties reached an agreement on joint development and increasing reserves necessary to fully supply the oil industry with raw materials by signing long-term agreements. A preliminary agreement on the supply of petroleum products, such as gasoline and diesel fuel, in fixed volumes and at competitive prices was also discussed.”
Gongor added: “We need to discuss fuel standards. Currently, there are Euro-2, Euro-3, Euro-4, Euro-5, and Euro-6 standards. Our country consumes 240 thousand tons of petroleum products per month, of which 60 thousand tons, or a quarter, we import from Russia in the form of AI-92 fuel, which corresponds to the Euro-2 standard.”
“Euro-2 fuel contains high levels of sulfur and causes significant harm to both the environment and human health. In contrast, Euro-5 products are less harmful. The Ministry of Environment has decided to introduce the Euro-5 standard in Ulaanbaatar starting from mid-2026, and this decision requires joint efforts,” emphasized the minister.
“Currently, only Kyrgyzstan and Mongolia receive Euro-2 from the Angarsk plant in Russia. There is no other option but to gradually transition to the Euro-5 standard,” added Gongor.
“The decision to transition to the Euro-5 standard in Ulaanbaatar will take effect from June. This agreement was reached between the city administration and the Ministry of Environment, and we are preparing for its implementation. The issues of implementing the standards remain the responsibility of local authorities and the ministry,” he clarified.
“It is necessary to provide our oil refining industry with the required raw materials. After the opening of the new plant, it will be able to meet 50% of our consumption and produce products according to the Euro-5 standard. Political decisions are needed to support this industry. That is why the company ‘Petrochina Dachin Tamsag’ will begin additional geological exploration work in our country,” concluded Gongor.
