The international energy market is set to see a wave of pioneering projects this year, with a particular Mongolian refinery project leading the way for the Asian revival of the oil sector. Mongolia is not a nation known for its oil production, relying mostly on imports from other energy-rich nations, such as China, for the vast majority of its energy resources. However, that reality is set to change as the nation’s state-owned refinery is set to come online this year following a recent investment made by India.
The state-owned Mongol refinery is set to come online this year
The evidence would suggest that the overwhelming calls to integrate the renewable energy sector have not reached the Asian nation of Mongolia. A new development has attracted the attention of the nearby nation of India, which has opted to bet big on the Mongolian oil refinery project, as the nation has provided a substantial line of credit to Mongolia to develop the new refinery.
Engineers India has been selected as the preferred contractor for the Mongol refinery, after a new line of credit totalling $1.7 billion was awarded for the project by the Indian government. The project will enable the eastern Asian nation to use its domestically produced crude to make transport and cooking fuel for local use.
India has been keeping a close eye on nearby energy projects that align with its own ambitions
India has one of the most diverse energy portfolios on the planet, no doubt a result of the astonishingly high demand for energy in the nation. India has one of the most densely populated regions of the world, which requires exceedingly diverse energy projects to meet demand. Now, the government is providing all the necessary funds to develop the Mongol refinery, while also providing the engineering contractors for the project.
The Mongol Refinery has signed a deal with India’s Megha Engineering and Infrastructure Limited
The deal lays out the detailed plan for the construction of the required components for the Mongol refinery, with specific technologies being provided by some of the largest energy companies in the world, at a price, of course. Notably, the technologies that are needed encompass the entire construction process, which India’s Megha Engineering and Infrastructure Limited is only all too happy to provide.
Some of the new tech for the project is:
- A Hydrogen plant provided by Italian Kinetics Technology
- Sulfur separation processes from the French company Axens
- Gas processing plant from US UOP Honeywell, as well as hydrocracking
- Visbreaking under license from the Dutch Shell company
The advancement of the Mongol refinery operations comes as nearby China has signed off on a new refinery and petrochemical complex in Dalian. The Asian energy market has been growing at an astonishing rate in recent months, paving the way for a new era of dominance led by the booming natural energy resource market in the region.
The clean energy revolution has not yet hit the Mongolian energy market
While the vast majority of the world is fostering investments in the renewable energy market, such as Turkey, which announced that AIIB and TSKB will fund a new 100 MW solar PV plant in the country, the renewable energy wave has not yet landed in Mongolia. Regardless, the construction of the Mongol refinery is moving forward, and the nation is set to become a new player in the traditional oil sector once operations begin later this year. By leaning on the vast expertise of India and the long list of international companies set to provide the required infrastructure, Mongolia is taking its energy future by the hand, leading it to a new era of domestic crude production.
