B.Nandin

Prime Minister G. Zandanshatar visited the construction site of the Oil Refinery Project in Altanshiree soum, Dornogovi province, on November 1, 2025, to review progress on one of Mongolia’s largest industrial developments.
The refinery, which was about 20 percent complete in June, has now reached over 50 percent completion. Since assuming office, the Prime Minister has prioritized the project and accelerated its implementation, with plans to commission the refinery ahead of schedule-possibly as early as next year.
The project, financed by a US$1.7 billion loan from the Export-Import Bank of India, consists of four main components. The first package was completed in 2024 and handed over to the State Commission. Construction of the power plant and processing facilities is currently underway, while the 527-kilometer crude oil pipeline is 89.4 percent complete.
The Government of Mongolia is also upgrading infrastructure, including the Shireet substation, whose capacity will be expanded to 25 MW, to ensure reliable operations. The Prime Minister emphasized that any intentional or unintentional obstruction of this strategic project would be considered an act against national interests.
India’s Ambassador to Mongolia, Atul Malhari Gotsurve, expressed confidence that the refinery could be completed ahead of schedule, noting that both countries are addressing challenges swiftly. He also requested continued facilitation of work visas for Indian specialists involved in the project.
Once operational, the refinery will process 1.5 million tons of crude oil annually, producing 834,000 tons of diesel, 396,000 tons of gasoline (Euro V standard), 80,000 tons of jet fuel, and 27,000 tons of liquefied gas, covering up to 50–100 percent of Mongolia’s domestic fuel demand and creating 1,500 new jobs.

Source: Zuuniimedee newspaper 2025.11.07 № 211 (7708), Friday.