During a briefing on April 25, Minister of Industry and Mineral Resources Ts.Tuvaan provided updates on Mongolia’s ambitious oil refinery project, revealing plans to accelerate the timeline for first production. The government now aims to have the refinery operational by the third quarter of 2027, ahead of the originally scheduled first quarter of 2028 target.  
Minister Ts.Tuvaan emphasized the project’s national importance, noting the critical need to secure Mongolia’s 1.5 million-ton crude oil supply. Discussions with PetroChina Dachin Tamsag to boost crude oil production to 750,000 tons this year have encountered difficulties, though officials remain committed to achieving this goal.  
The project faces multiple challenges that require resolution. Financial reconciliations with PetroChina, including outstanding tax payments, audits and social security contributions not covered by existing agreements, need to be settled. At the local level, cooperation issues persist with provincial and soum leaders, while Mongolian NGOs, particularly women-led organizations, continue voicing concerns about the project. Recent tensions, including Chinese embassy complaints about security incidents, have added another layer of complexity to the bilateral energy cooperation.  
Once completed, the refinery will mark a major milestone in Mongolia’s energy independence. With an expected annual production of 80,000 tons of aviation fuel, the facility will allow domestic airlines to source their fuel needs locally rather than relying on imports.  
Minister Ts.Tuvaan stressed that overcoming the current obstacles remains essential for Mongolia’s strategic energy projects. The accelerated timeline demonstrates the government’s determination to push forward with this key infrastructure development, even as it works to address the various operational, financial, and diplomatic challenges that have emerged. The success of this project could significantly enhance Mongolia’s energy security and economic self-sufficiency in the coming years.

Published Date:2025-04-28