Mongolia and China Bolster Oil Partnership with Fuel Supply Agreements

Mongolia and China have strengthened their strategic partnership in the oil sector by agreeing to cooperate on fuel supplies, investment in oil exploration and production, and coal-chemical technologies. In September, China's National Petroleum Corporation (CNPC) will supply Mongolia with 10,000 tons of gasoline, 4,000 tons of jet fuel, and 3,000 tons of diesel fuel.

The two sides have also agreed to work towards shifting fuel procurement from short-term purchases to long-term, stable supply contracts with guaranteed volumes and transparent pricing. This is part of a broader plan to increase annual oil production in Mongolia to 0.8-1.0 million tons by 2030.

CNPC has expressed willingness to invest in new oil exploration areas in Mongolia, while a joint technical team will be established to determine the volume and quality of crude oil production and supply for the Mongolian Oil Refinery, scheduled to be commissioned in 2028.