Sep. 29. 2010
Marubeni Corporation and Toyo Engineering Corporation signed a Framework Agreement with Mongol Sekiyu Corporation on the 29th of September to discuss participation in the construction of an oil refinery in the Mongolian city of Darkhan, which is 200 kilometers north of the Mongolian capital of Ulaanbaatar.
The oil refinery would have a processing capacity of 44 thousands barrel 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 U.S. dollars. The refinery is intended to begin operations in the autumn of 2014.
As for potential crude oil supply sources for the refinery, Marubeni signed a comprehensive agreement with the Irkutsk Oil Company in June of this year to purchase crude oil from their Irkutsk oil field and there is the possibility that this oil could be supplied to the refinery as feedstock.
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 the country.
By making use of our worldwide network and applying our project know-how, Marubeni is able to promote petrochemical related projects while at the same time proposing the efficient utilization of oil and gas to various countries.