43 months ago, a government resolution was issued regarding the construction of Mongolia's first large-scale oil pipeline.
The plan was to build a 530-kilometer pipeline from the Tamsag Basin in Matad and Khalkhgol districts of Dornod province to Dornogovi province, with a budget of $388 million.
The Chinese state-owned company Norinco International Cooperation was selected as the general contractor and began work in June 2022. The company was awarded a contract to build the pipeline over a three-year term, until the commissioning of Mongolia's first oil refinery. The cost of the pipeline alone is $380 million. The country will pay this amount entirely in coal.
The government is working on the project, but the construction of the pipeline has not yet been completed.
"The work is being finalized. The reason for the delay in the pipeline construction work is COVID-19 and the delay in approving additional financing," Minister of Industry and Mineral Resources Damdinyam Gongor stated.
"The construction of the first oil refinery (NPP) is in progress. Just four months ago, the project was over 20% complete, and today it has reached more than 50%. When the plant will be completed, it will produce 1.5 million tons of petroleum products per year, and Mongolia will be able to cover 50–100% of its domestic fuel needs. 1,500 new jobs will be created," he said.

Published Date:2025-11-05