Mongolia refinery to be built by India by 2025
Mongolia will have its first oil refinery up and running by 2025. The first phase of the $1.2 billion Indian soft loan-funded Mongol Oil Refinery will be finished by the end of the year. Given that Russia is the only source of energy imports for Mongolia, the development has strategic ramifications.
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Mongolia refinery to be built by India by 2025: Key Points
- The refinery will enable Mongolia to satisfy 70% of its domestic demand.
- According to the nation’s ambassador, Dambajav Ganbold, the first oil refinery in Mongolia, which is being constructed on the outskirts of the capital city of Ulaanbaatar with funding from India, would be finished by 2025.
- Mongolia also intends to entice investment from India in its mining and metals industries with intentions to start shipping coking coal to India by 2024.
What all Mongolia have to offer?
- Important rare earth metals are also found in Mongolia, which may be essential to India’s plans to develop cutting-edge technical capabilities in semiconductors and sustainable transportation.
- Indian businesses have already travelled to Mongolia to investigate these possibilities. It is anticipated that regular direct flights between Mongolia and India will be established in order to enable these exchanges.
- India is Mongolia’s significant “third neighbour” in this area. This is one of the foreign policy’s key ideas, and it first came up because of Mongolia’s two large neighbours, Russia and China.
- So, in order for Mongolia to be an independent state, it is needed to establish contact with a third neighbour.
- This provides Mongolia the chance to expand and strengthen collaboration both locally and globally.
- Since Prime Minister Modi’s historic visit to Mongolia in 2015, the governments have agreed to build the country’s first oil refinery.
- This refinery project, which comprises four packages, is currently in full swing.
- Right now, the first package, or EPC 1, is more than 70% finished, and it will be finished this year.
- Following the tender procedure for the final three packages, Hyderabad-based Megha Engineering and Infrastructures Limited was chosen.
- Mongolia’s Independence and energy security will increase thanks to the refinery.
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Important Takeaways For All Competitive Exams:
- Mongolia capital: Ulaanbaatar
- Mongolia Prime Minister: Luvsannamsrain Oyun-Erdene
- Mongolia currency: Tugrik