India-backed oil refinery in Mongolia to start operations by 2028

NEW DELHI (Reuters) -An Indian-backed oil refinery in Mongolia is expected to begin operations in 2028, India's foreign ministry said on Tuesday, adding that the Mongolian authorities also want Indian firms to explore for oil and gas in the country.

The announcement was made during Mongolian President Khurelsukh Ukhnaa's visit to India. Mongolia's first oil refinery is being built with a $1.7 billion Indian line of credit and will have the capacity to process 1.5 million metric tons of crude oil annually, or 30,000 barrels per day.

"The refinery equipment is being manufactured in India and will be shipped to Mongolia," said P. Kumaran, an Indian foreign ministry official. "It seems to be on track. And we expect that by 2028 the refinery should be operational," he told reporters.

India is also looking to import coking coal from the land-locked country wedged between Russia and China, Kumaran said. Russia and Mongolia have a discount deal for Mongolian goods transiting through Russia via its railway and seaports, he added.

"We are also trying to get more details to see if we can take advantage of the discount arrangement that is available between Mongolia and Russia," Kumaran said.