On June 13, the Speaker of the State Great Khural (Parliament) Damdin Demberel met with Japanese delegations headed by the Senior Executive Vice President of the Marubeni Corporation Fumiya Kokubu, where Speaker D.Demberel has familiarized with work progress and exchanged opinions of the Mongolia-Japan joint oil refinery
, which is being built in Darkhan-Uul aimag.
This corporation is highly interested in the Mongolian market and is running a policy to further expand its activities in Mongolia. In this regard, the corporation is mainly focusing on establishing a Strategic Committee under the corporation and on issues of communicating, investing and supplying technology with Mongolia, noted Mr. Fumiya Kokubu. He also said that while running this project, they were interested in investing in the social infrastructure sector, such as roads, communication and building an airport
, and in sector of mineral resources, such as coal, copper and uranium. Also, F.Kokubu told the Speaker of the Parliament that except for the establishment of a joint company to supply mining equipment and mechanisms to Mongolia, they were to sign an agreement yesterday on supplying equipment for the oil refinery being established in Darkhan-Uul aimag. He noted that this corporation has a distinct quality of comprehensively solving and accurately organizing investment for project financing, management, technology and technical equipment.
In the past few years, Mongolia has been taking much account for the opportunities for rapid economic development
and putting its natural resources into circulation. The Speaker of the Parliament said that he seeks to utilize modern day Japanese technology while investing in this large project of a wide range. In this time when the issue of infrastructure is crucially important in utilizing large mines, he appraised the Japanese companies for paying attention and expressing their interest for investment, and further said that he wishes for Japanese involvement in the Mongolian mineral resource mines, such as coal and copper. The Speaker of the Parliament also expressed his high satisfaction in the establishment progress of the joint plant in Darkhan-Uul aimag, and said, “The broad ranged development of Mongolia produces a higher demand for petroleum. Thus, I believe the oil refinery
to be a promising sector of high income”, reported the Press and Promotions Department of Secretariat of the Parliament.
Back in September 2010,
Marubeni Corporation and Toyo Engineering Corporation signed a Framework Agreement with Mongol Sekiyu Corporation on September 29, 2010 to discuss participation in the construction of an oil refinery in Darkhan city of Darkhan-Uul
The oil refinery would have a processing capacity of 44 thousand barrels a day of crude oil and would be able to produce 1 million tons per year of diesel fuel, 630 thousand tons annually of gasoline and 60 thousand tons per year of jet fuel.
Marubeni and Toyo Engineering would be in charge of engineering, procurement, construction, maintenance and operation of the refinery, with an expected total construction cost of 600 million USD. The refinery is intended to begin operations in the autumn of 2014.
Although the development of such natural resources as coal, copper and uranium in Mongolia has rapidly progressed in recent years, Mongolia is still heavily dependent
on diesel fuel, gasoline, jet fuel, and other oil product imports from Russia. The construction of this refinery, the first in Mongolia, would go a long way toward eliminating its dependence on foreign oil product imports, and as such is a very important project for Mongolia.