Jan. 14 (Bloomberg) -- Mongolia targets ending its reliance on imported fuel by 2015 with the completion of the country’s first oil refinery, the state-owned Montsame News Agency reported.
The plant will be able to process two million metric tons of oil per year, sufficient for domestic needs, the news agency reported Jan. 12, citing a government meeting held that day. Japan’s Toyo Engineering Corp. will build the refinery, in conjunction with unidentified Mongolian companies, with financing for the project to be discussed with Japanese banks next month, the report said.
The refinery is planned for Darkhan city, according to the report. Darkhan, which means “blacksmith” and is located 140 miles north of the capital Ulan Bator, was established in 1961 with assistance from the Soviet Union as an industrial and agricultural hub.
Domestic production of gasoline will help cut prices 6-8 percent, according to Montsame. The investment in the refinery could be recouped in four years, the agency reported. Mongolia currently relies on imported gasoline and other oil products, nearly all of which comes from Russia.
Mongolia has been in talks with Japanese companies to build the refinery since at least 2011. An article published by the news portal infomongolia.com in June 2011 said the facility would be built within three years. The report said $600 million was expected to be invested in the project.
To contact the reporter on this story: Michael Kohn in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: John Liu at email@example.com