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Thank you. Prior to all I would like to extend ...
In our last edition we carried an article on Mongol refinery. When complete it will help in energy security for Mongolia. Please elaborate?
Thank you. When Honourable Narendra Modi, Prime Minister of India visited Mongolia he announced an USD 1 billion Line of Credit (LoC). The two governments, thereafter, undertook a series of surveys to identify where and how to use the LoC in an efficient manner.
After several studies and numerous talks the Mongolian government shortlisted a few areas such as railways, agriculture and processing industry, in particular oil sector, for using the funds. This decision was based on the specific geography and economy of Mongolia—for instance its land-locked position, sparsely populated but enormous land mass with a rich endowment of natural resources, substantive agriculture (animal husbandry and land cultivation), as well as mining sectors, which are booming nowadays in proximity to the almost insatiable markets.
Mongolia produces crude oil while the nation imports refined petroleum. In doing so she spends roughly $1.5 billion annually for buying petroleum and lubricated materials. Henceforth, the feat of building an oil refinery should help reduce, if not eradicate, such kind of dual dependence. It would also give her ample room to reallocate much needed foreign exchanges for other acute needs. Moreover, hundreds of new job places would reduce unemployment and poverty too. I believe it would unleash another wave of industrialization too.
The decision has been ratified by the Parliament and enthusiastically endorsed by the Government of India. Issues of location, modality and timing to take maximum benefit of LoC have actually entered the next stage with project documents development augmented by legislative acts of the two countries.