ONGC India26 Jul 2025 08:16
ONGC (Oil and Natural Gas Corporation Limited), an Indian energy company, is exploring opportunities in Mongolia's oil and gas sector. This is likely driven by Mongolia's significant hydrocarbon reserves. ONGC's potential entry into the Mongolian market is part of a broader effort by India to strengthen its strategic partnership with Mongolia, including collaboration on the construction of Mongolia's first oil refinery.
Here's a more detailed look at the project:
• Mongolia's First Oil Refinery:
India is providing financial and technical assistance to Mongolia for the construction of its first oil refinery, with a capacity to process 1.5 million tons of crude oil per year.
• Financing:
The project is being financed through a soft loan from the Government of India, with an estimated cost of USD 790 million, according to News.MN.
• Contractors:
Megha Engineering and Infrastructures, an India-based company, is handling the engineering, procurement, and construction (EPC) for the refinery, including the construction of open art units, utilities, offsites, plant buildings, and a captive power plant, according to News.MN.
• Project Benefits:
The refinery, once completed, is expected to reduce Mongolia's dependence on imported oil from Russia and help meet its domestic demand for petroleum products.
• Strategic Partnership:
The project is part of a broader strategic partnership between India and Mongolia, encompassing various sectors like mining, coking coal, and railways, according to Economic Diplomacy Division.
• ONGC's Role:
While the specific details of ONGC's involvement are not detailed in the search results, it is likely that they are exploring potential opportunities related to the refinery project and the overall oil and gas sector in Mongolia.
• Progress Review:
India and Mongolia have been reviewing the progress of the refinery project, with high-level officials from both countries inspecting the construction site and discussing potential collaborations.
• Connectivity:
Direct flights between Mongolia and India are also being explored to further enhance business and people-to-people connections, according to Mint.
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