Prime Minister N.Altankhuyag’s visit to China is nearing to an end. The two Prime Ministers of the countries had direct talks, and have signed number of agreements on strategic level. Besides meeting the Premier Li Keqiang the Prime Minister also met the General Secretary Xi Jinping.
Mongol-93 petro supply will increase 4-fold
Two countries have signed “Mid and long term strategic development program between Mongolia and China” during the Prime Minister N.Altankhuyag visit. In accordance with the program two countries have also signed Memorandum of Understanding on mining and oil sector partnerships. The documents articulated partnerships in building coal gasification plants in Mongolia and establish gas export channels.
The plant will be based on brown coal, and after supplying domestic needs, gas can be exported to China. The project will be partnered with Sinopec Group – world’s fifth biggest group by revenue. The preliminary plan is to build a plant that has capacity over 15 billion metric cube gas annually, demand of coal is estimated at 50 million ton per-year. The direct revenue from the mining of coal is USD1 billion, and 20 thousand jobs will be created both indirectly and directly.
Considering the increasing oil extraction in Mongolia, MoU was signed between Petroleum Authority of Mongolia and PetroChina International. The current swap arrangement is 10 thousand ton per month Mongol-93 petroleum from China in exchange of extracted oil in Mongolia. The expansion of petro-transfer facilities will be completed in the coming month at Zamyn-Uud port, therefore the import of Mongol-93 will be increased to 35-40 thousand tons per month, at full capacity of the facility.
China to construct a port-railway
Two sides agreed to partner on border railway, and signed a MoU. State owned companies Shenhua Group Corporation, Erdenes TT JSC, and public company Energy Resources and Tavan Tolgoi JSC will be working as a consortium with Mongol Railway. Shenhua Group Corporation will construct a a port-railway on the port Gashuun Sukhait and transfer it to Mongol Railway.
Source: Cabinet Press Office