Amarbayasgalan D, Chief of the Government Secretariat, visited the construction site of the oil refinery project in Altanshiree Sum, Dornogovi Province, where he inspected the progress of the project, identified any obstacles, and assessed its overall development. The project is being carried out with the financial assistance of a soft loan provided by the Government of the Republic of India.In line with the action program of the Government of Mongolia for 2020-2024, there are plans to construct an Oil Refinery utilizing domestic raw materials. The project, which has a processing capacity of 1.5 million tons per year, has initiated non-technological construction works under the EPC-1 contract. The subsequent phases include the construction of technological facilities in the EPC-2 package and the operation of a thermal power plant in the EPC-3 package. Contracts for both EPC-2 and EPC-3 were finalized in 2022. The Chinese state-owned company Norinco International Cooperation has been selected as the general contractor responsible for constructing the oil pipeline for the refinery and has commenced work since the end of 2022.
According to the project management, the project has faced various challenges that have had a significant impact on its progress and overall operations. These challenges include inventory shortages resulting from border customs situations, losses incurred due to VAT issues, and complications arising from labor visa matters. These issues have posed difficulties and hurdles that the project team has had to overcome in order to ensure successful implementation.
Amarbayasgalan D, Chief of the Cabinet Secretariat, has expressed the government's dedication to ensuring the successful implementation of the oil refinery project. In light of this commitment, he has stated that the Prime Minister has assigned the task of resolving the project's issues within a short timeframe and ensuring uninterrupted progress in the construction work.
