In Mongolia, the project for the first large oil refinery is actively being implemented, located in the Altanshireet sum of the Dornogovi aimag. The construction is financed by a concessional loan of approximately $1.7 billion provided by the Export-Import Bank of India.
The construction work is being carried out in four phases, and to date, 50% of the volume has been completed. Additionally, the oil pipeline project is nearing completion, with 90% readiness, as reported by Altantsetseg Dashdavaa, the General Director of Mongolian Oil Refinery LLC.
According to the intergovernmental agreement, the plant is scheduled to be commissioned in 2028. However, the government of Mongolia and the Ministry of Industry and Mineral Resources are striving to expedite the process, which may allow the plant to begin operations a year earlier than planned.
The Minister of Industry and Mineral Resources, Damdinyam Gongor, noted: "In the context of the fuel crisis, Mongolia was 95% dependent on Russia and 5% on China. We were completely reliant on imports. Building our own refinery is a step towards reducing this dependence. After the plant is commissioned, we will be able to cover about 50% of domestic demand for petroleum products. The main task at the moment is to ensure the necessary supply of raw materials. We plan to negotiate with PetroChina to address this issue."
Currently, the construction of pipeline trestles for primary processing has been completed, as well as the concreting of foundations for atmospheric and vacuum distillation units. Installation work is ongoing on the pipeline trestles, substations, and auxiliary buildings intended for management and maintenance.
There are also reports of the construction of a tank farm, pipeline trestles, substations, and foundations for the power plant control system. The main construction work is nearing completion. Most of the technological equipment for the plant is being produced by nearly 20 Indian companies, and its manufacturing process is complete, preparing for shipment by sea to Mongolia.
The main technological units, such as the propane and butane separation unit, the naphtha stabilization unit, as well as other important aggregates, are produced by Sudhir Brothers from Mumbai, India. They undergo full quality control and testing, and some of them are being prepared for shipment. After corrosion treatment, all these aggregates will be ready for sea transportation from the port of Mumbai in January 2026.
Additionally, at the Sparkle Clean Tech plant in the same city, the production of wastewater treatment units and various filters for the oil refinery's water treatment system is nearing completion. Currently, testing and inspections are being conducted. It is expected that the transportation of equipment to Mongolia will begin between January and April 2026.
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