(LiveMint)
As part of its strategy of creating an energy security architecture for its partners, India’s oil minister Dharmendra Pradhan is in resource-rich Mongolia today for the commissioning of railway, road and power transmission infrastructure for the construction of country’s first petrochemical refinery.
The Mongol refinery project is the largest project undertaken by the government of India under its Lines of Credit (LoC) programme and is expected to cut some of Mongolia’s fuel import dependence. The petrochemical refinery to be built at an approximate cost of $1.25 billion utilising the $1.236 billion line of credit from India comes in the backdrop of China’ Belt and Road Initiative (BRI).
Once ready, the capacity of the refinery will be 1.5 million metric tons per annum, with diesel and gasoline as the primary products and liquefied petroleum gas (LPG), fuel oil and jet fuel being produced as secondary products. State-run Engineers India Ltd (EIL) is the project management consultant for the development of the oil refinery—near Sainshand in southern Dornogovi province— expected to be completed by 2022.
