Mongolia advanced its energy security strategy during the November 5 Cabinet meeting, where leaders reviewed key refinery developments. This energy security strategy shaped several new directives aimed at ensuring stable crude supply and accelerating supporting infrastructure.
Minister of Industry and Mineral Resources Damdinnyam Gongor briefed the Cabinet after Prime Minister Zandanshatar Gombojav inspected the Mongol Oil Refinery. During his visit, the prime minister examined construction progress and evaluated oil production at several nearby enterprises. He also stressed that Mongolia must secure reliable crude sources to reduce heavy reliance on foreign fuel imports.
Consequently, government leaders instructed officials to create agreements guaranteeing regular crude deliveries from contractors working under production-sharing terms. These agreements will help maintain steady refinery operations once production begins. Moreover, officials said consistent feedstock remains essential for long-term stability and financial efficiency.
Additionally, the Cabinet approved further support for the refinery’s workforce. Leaders directed agencies to fund the second phase of the workers’ residential complex using a Development Bank of Mongolia loan. Erdenes Mongol LLC will guarantee the loan, thereby improving financing reliability. Officials added that better housing will strengthen worker retention and improve operational readiness.
Furthermore, the government ordered the inclusion of the Shireet substation expansion in the 2026 state budget. This upgrade will increase energy capacity for the refinery and nearby industrial zones. Once funding is approved, agencies will begin construction immediately to prevent operational bottlenecks.
Industry analysts noted that these measures clearly reflect Mongolia’s broader energy security strategy. They emphasized that the refinery remains central to building a stronger and more diversified domestic petroleum sector. They also highlighted that dependable crude supply agreements can shield the project from global market volatility.
Looking ahead, government officials expect construction progress to accelerate throughout 2026. They plan to improve coordination between contractors, energy producers and refinery managers to prevent delays. As Mongolia continues strengthening its energy security strategy, leaders aim to build a more resilient and self-sufficient national energy system capable of supporting sustainable growth.
