Arya News - Mongolia`s Ministry of Industry and Mineral Resources and China National Petroleum Corporation (CNPC) have agreed to strengthen cooperation in the oil sector and elevate the strategic partnership between the two countries over the next 20 years.
ULAANBAATAR – Minister of Industry and Mineral Resources G.Damdinnyam met with Zhou Xinhuai, General Director of China National Petroleum Corporation (CNPC), and agreed to strengthen cooperation in the oil sector and elevate the strategic partnership between Mongolia and China over the next 20 years.
CNPC has agreed to supply Mongolia with 10,000 tons of gasoline, 4,000 tons of jet fuel, and 3,000 tons of diesel fuel in September.
In addition, Mongolia has requested that CNPC supply an additional 5,000 tons of AI-92 gasoline and 20,000–30,000 tons of diesel fuel, as well as 10,000 tons of AI-92 gasoline and 30,000–40,000 tons of diesel fuel in October. CNPC expressed its willingness to promptly review the requests and provide a positive response.
The two sides also agreed to work toward shifting fuel procurement from short-term purchases to long-term, stable supply contracts, with guaranteed volumes, transparent and fair pricing formulas, and supply arrangements coordinated with railway logistics. The parties aim to reach a concrete agreement in the near future.
The meeting also covered long-term cooperation in sustainable fuel supplies, oil exploration and production, development of new exploration areas, crude oil supply for refineries, and coal-chemical production.
INVESTMENT IN OIL EXPLORATION AND PRODUCTION TO INCREASE
The investment and production programs for the Toson-Uul XIX and Tamsag XXI oil fields for 2026–2030 will be revised, with production increased through the drilling of new wells, reassessment of reserves, and the introduction of advanced technologies.
The two sides will conduct a joint technical and economic assessment aimed at increasing annual production to the maximum feasible level of 0.8–1.0 million tons and will develop a detailed roadmap to achieve this target.
At the same time, CNPC will be invited to invest in new oil exploration areas in Mongolia, while preliminary joint geological and economic assessments will be conducted for one or two potential fields.
To ensure the sustainable operation of the Mongolian Oil Refinery, which is scheduled to be commissioned in 2028, a mechanism will be developed to secure long-term crude oil supplies from the Toson-Uul XIX and Tamsag XXI fields.
In this regard, a joint technical team comprising representatives of the Ministry of Industry and Mineral Resources, CNPC, Daqing Oilfield and the Mongolian Oil Refinery will be established to determine in detail the volume and quality of crude oil production and supply, as well as transportation logistics.
Cooperation in coal-chemical technologies, including coalbed methane, synthetic gas, and coal-to-liquid fuel production, will also be expanded. The parties agreed to assess the feasibility of projects for deep coal processing and the production of value-added products.
Following the meeting, the parties agreed to sign a Memorandum of Understanding between the Ministry of Industry and Mineral Resources and CNPC and finalize a detailed roadmap.
The long-term objective is to broaden Mongolia-CNPC cooperation beyond fuel supplies through an integrated approach covering exploration, extraction, processing, fuel supply, and coal-chemical production.