Marubeni, Toyo Engineering to build Mongolia’s 1st oil refinery

Marubeni Corp. and Toyo Engineering Corp. are set to win a contract to construct Mongolia’s first oil refinery. The companies have reached a basic agreement with a local petroleum company to build the facility in the northern city of Darkhan. The deal, which may be finalized by year-end, is estimated at US$600 million. The refinery is expected to come onstream in 2014 and will be capable of processing 44,000 barrels of crude oil daily. Toyo Engineering will handle construction, while Marubeni will manage the project and procure materials and equipment. When it gets into full swing in 2015, the refinery will be able to produce about 1 million tons of diesel fuel and 600,000 tons of gasoline annually from crude oil transported by rail from Russia and Kazakhstan. (September 29, 2010)