Mongolia starts work on refinery project with Indian help

An Indian delegation headed by Minister of Petroleum & Natural Gas and Steel, Shri Dharmendra Pradhan, participated in the ceremony for commissioning the infrastructure facilities being constructed to support a proposed oil refinery project in Mongolia

October 6, 2019

Agenda: to finalise the roadmap for the construction of the 1.5 MMT Oil Refinery Project that is being made with Indian assistance.

Possible areas of collaboration in other sectors like mining, coking coal, and railways were also discussed.

Part of the ongoing efforts to deepen strategic relations between the two nations.

Last month, our Memorandum of Understanding (MoUs) were also signed between the two nations in areas including space, disaster management & culture.

Minister of Petroleum & Natural Gas and Steel Shri Dharmendra Pradhan paid an official visit to Mongolia from 7th to 9th of October. He was accompanied by government and business delegation to finalise the roadmap for the construction of the 1.5 million tonnes oil refinery project that is being built with Indian assistance. This refinery is being touted as the largest project being undertaken by the Government of India under its lines of credit programme. 

EngineersIndia Ltd, a public sector undertaking of the Ministry of Petroleum and Natural Gas is providing project management consultancy services for the refinery project. On completion of the project, Mongolia’s first petrochemical refinery, it will meet about three-fourths of Mongolian oil requirement. The refinery is expected to be completed by 2022 and will help Mongolia cut some of its dependence on imported fuel, ensuring energy security.

The Indian delegation was on a followup visit after the Mongolian President’s state visit to India last month in September. During the visit, possible areas of collaboration in sectors such as mining, coking coal, and railways were discussed. India had also announced an additional US $236 million credit extended to Mongolia beyond the US$1 billion commitment. India is committed to working with the Government & people of Mongolia to further strengthen strategic partnership for mutual prosperity. 

India and Mongolia had released a joint statement on September 20, 2019, following bilateral talks between Indian President Ram Nath Kovind and visiting Mongolian President Khaltmaagiin Battulga. Last month India and Mongolia had also signed an agreement whereby India had introduced e-Visa facility for the Mongolian short-term visitors and Mongolia had announced a “visa on arrival” scheme for Indian short-term visitors. 

Four additional agreements were signed between the two nations in areas including space, disaster management & culture. These are expected to deepen ties between the two nations. 

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