Prime Minister Concludes Productive Visit to China

Prime Minister N.Altan­khuyag paid a four-day official visit to the People’s Republic of China, which concluded on October 26. The sides emphasized that the official visit was fruitful and strategically significant in terms of bilateral economic and social relations.

The most essential outcome of the Prime Minister’s visit is that China and Mongolia signed a document that outlines key areas of cooperation for the development of their strategic partnership in the medium and long term. The two countries agreed to cooperate on economic, security, social and cultural matters, and on trade, acknowledging the need to mind each other’s core interests and major concerns.

Fuel supply to be increased by 35 to 40 thousand tons

As part of the medium and long-term development of China-Mongolia strategic relations, officials of Mongolia and China signed three memorandums of understanding on building the coal derived gas producing industry, exporting fuel and supplying petroleum products.

The Petroleum Authority of the Mongolian Mining Ministry and Chinese PetroChina International Corporation Limited signed an MoU to increase China’s crude oil supply extracted in Mongolia due to its increasing demand. Under the MoU the amount of fuel bought by China will be increased by 35 to 40 thousand tons. By increasing the fuel supply, the domestic supply of fuel will be stabilized and the retail price of fuel will be decreased, said officials.

Currently, the Inner Mongolian oil refinery supplies 10,000 tons of fuel a month. The supply amount is set to increase to 35,000 to 40,000 tons per month when the border capacity expansion projects are complete.

Mongolia started marketing Mongol-93 petrol, the first ever fuel produced from oil extracted from Mongolia, in May 2013. The crude oil for Mongol-93 is extracted in Mongolia and processed in the Inner Mongolia Autonomous Region of China.

The supply amount was held up at 10,000 tons a month due to low load capacity at the Zamyn-Uud Railway Station at the Mongolia-China border point, even though crude oil reserves...