Ulaanbaatar
Oil refinery to be built with Indian Exim bank's loan
EconomyUlaanbaatar /MONTSAME/ Within the framework of a general credit agreement of USD one billion concluded between the Government of Mongolia and Export-Import Bank of the Republic of India, an oil-refinery construction project will be implemented in Sainshand soum of Dornogobi aimag.
Afterwards, related Ministers were tasked to negotiate with the Exim Bank of India.
A total investment of the project is USD one billion, of which USD 0.7 billion will be spent on oil refinery construction, and USD 264 million on oil pipelines.
As expected, the oil refinery is projected to earn net profit of USD 43 million each year from its annual sales of USD 1.2 billion and planned to recover its investment within 8-10 years.
The oil refinery will process 1.5 million tons of oil a year, 560,000 tons of gasoline with the environmental standard Euro 4 and 5, and 670,000 tons of diesel fuel and 107, 000 liquefied petroleum gas.
After the implementation of oil-refinery project, the Mongolia's GDP is expected to rise by 10% while the volume of processing industry will double.
It is also projected that oil product import will be reduced by USD 1 billion and currency outflow will decrease by 20%, and the USD exchange rate by 18-25%.
