For the first time Mongolia has started to deliver to the market the fuel produced by oil extracted from its own territory. Highlighting an importance of this event, the Prime Minister of Mongolia N.Altankhuyag and related ministers took part in opening ceremony of distributing this new brand of fuel.
Thus, Mongolia delivers its crude oil mined from Dornod aimag’s Tamsagbulag oil deposit, the easternmost part of the country to the Inner Mongolian Autonomous Region of People’s Republic of China and imports instead a fuel of new standard referred as to Mongol 93.
Mongol 93 gasoline is to be sold at relatively lower price. According to the intergovernmental agreement of two countries, Mongolia will export 10 thousand tons of its crude oil to “China oil” company and in exchange to import an end-product of fuel cheaper in $100-150 per tons. This amount of gasoline is sufficient for providing about 40 percent of fuel consumption of Mongolia.
Mongolia imports 1.1 million tons of oil products a year, of which 98,2 percent is delivered from the Russian Federation, and the remnant is being supplied from the People’s Republic of China and the Republic of Korea.
As esteemed, the fuel consumption of Mongolia will be increased more in the coming years due to the intensive economic development of the country and improvement of Mongolian people’s welfare.
Though Mongolia has 35-42 million tons of guaranteed oil reserves, its fuel consumption is almost fully dependent from other country. But Mongolia thus could make the first step to avoid oil products’ dependent status.