Entity

Mongol Refinery State Owned LLC is a Mongolian state-owned enterprise responsible for developing and operating Mongolia's first oil refinery. The company was established as part of Mongolia's strategic initiative to reduce dependence on imported petroleum products and enhance energy security. 

Refinery Specification

Mongol Refinery is developing Mongolia's first greenfield oil refinery with the following key features:

• Processing Capacity: 1.5 million tonnes of crude oil per year
• Location: 150-hectare site in Altanshiree soum, Dornogobi Province
• Expected Commissioning: March 2026
• Total Investment: USD 1.7 billion

Financial Structure

The project is financed through a USD 1.7 billion soft loan from the Export-Import Bank of India under a government-to-government (G2G) framework. The loan terms include:

• Repayment period: 20 years
• Interest rate: 1.75% annually

Strategic Objectives

The refinery is designed to:

• Supply approximately 55% of Mongolia's domestic fuel demand
• Reduce dependence on petroleum imports from neighboring countries
• Contribute up to 10% boost to Mongolia's GDP
• Enhance energy security and reduce vulnerability to international oil market fluctuations