Mongolia will begin building an oil refinery early next year in an effort to meet domestic demand and reduce dependence on neighboring Russia for energy supplies. Construction on the refinery began on August 11 in the southeastern city of Saishand in Dornogobi province in cooperation with Mon L Gas LLC. The Saishand refinery will process 5000tns of crude oil per year. The Mongolian government granted Sodmongol a license to construct the facility in 2008. Mongolia’s domestic oil consumption is currently less than one million tons per year. The Mongolian government eventually intends to construct a total of three refineries. The second will be located in Darkhan-Uul. Built with the cooperation of Mongol Seku LLC, the Darkhan-Uul refinery will have an annual processing capacity of 200,000tns/yr. The third, to be built in Zuunbayan in Dornogobi province, is slated to have an annual production capacity of 300,000tns.
