President N.Enhbayar received authorities and representatives of Mon Oil and Gas LLC. Also O.Sodbileg, Executive Director of Mon Oil and Gas LLC, D.Enhchimeg, General Director of Petrovis LLC, Ch.Davaanyam, General Director of NIC JSC and R.Ganzorig, General Director of Magnai trade LLC attended the meeting. Mon Oil and Gas LLC has been established at the initiative of major national companies including Petrovis LLC, NIC JSC, Magnai trade LLC, Shunhlai group LLC and Just Group LLC with purposes of increasing the number of petroleum product suppliers and maintaining price stability in the domestic market. During the meeting, the President expressed his encouragement towards the expression of interests of petroleum importer companies to collaborate and suggested that it was essential to identify the way properly, by developing the proposals on the basis of researches and solutions and submitting to the Government and National Security Council.
We reported O.Sodbileg, Executive Director of Mon Oil and Gas LLC after the meeting.
What was the main goal of the meeting?
Petroleum importer companies visited the President of Mongolia N.Enhbayar to discuss whether there are other foreign sources and the state could provide support on it. Nothing has been solved yet so far. Since Mongolia is hit hard by the growth in gas and petroleum prices in the world , our importer companies work hard to find other cheaper sources.
Why did the companies unite and form a consortium?
Since it is difficult for a single company to carry out all activities of importing gas and petroleum, authorities of major petroleum importer companies gathered together and formed the Company Mon Oil and Gas.
Would it be open to other companies to join?
So far, 5 or 6 companies joined and launched activities. There is no special policy on joining the consortium.
Would the petroleum prices be subject to change?
Decrease in barrel petroleum in the world market doesn’t affect Mongolia, because we don’t import petroleum from there. This is what our customers should realize. Since importer companies import their products at the prices said by foreigners, thus there is no policy to maintain the price. However the Government maintained price a lot recently by giving subsidies. Mongolian economy is a small one though no country could maintain petroleum price in case of rapid increase in the future. Even USA could not handle it when the petroleum price goes up in the world market.