Mongolian Oil Refinery GDP to grow over 10%11 Aug 2025 09:30
Socio-economic benefits of the oil refinery
Firstly, once it becomes possible for Mongolia to produce its own gasoline and oil products at the oil refinery in Altanshiree soum, the country will no longer be dependent on imports. In other words, the country will increase its economic independence in the region.
Furthermore, the foundations for the petrochemical industry will be laid out with the introduction of the technology. Alongside making contributions to the state and local budgets, the refinery will not only create some 600 job opportunities, but also significantly increase the number of jobs available in the industry indirectly.
As the outflow of foreign currency decreases, foreign exchange rates will stabilize. And as a result, Mongolia’s GDP is estimated to grow by over 10 percent. In this sense, the project for the construction of an oil refinery in Altanshiree soum could be considered as one of the main projects to boost the country’s development.
$ 1.7 Billion on Refinery ( Loan )
$300 Million on pipeline
Requires 30,000 bopd feedstock. Current domestic
production is less than half that and declining
• Heron Field production will help meet this demand
• Pipeline construction from Mongol Refinery is now close to
Block XIX (97% pipeline welded and 67% buried)4 and
pump stations are being constructed.
• Pipeline will offer a more cost effective off-take than current
trucking