Mongolia

Eager to expand exploration in both traditional hydrocarbons and unconventional fossil fuels like oil shale and coal bed methane (CBM), Mongolia’s parliament overhauled the existing 1991 framework with a new Petroleum Law in July 2014. Significantly easing terms for exploration, the new rules have created much-needed clarity in applying for production-sharing contracts (...

Despite abundant resources, Mongolia has struggled to shore up its energy security and decrease its dependence on Russia for refined fuel and electricity. The government has made some headway in diversifying fuel imports and improving its terms of trade, while several mid-stream projects could develop domestic refined fuel production. Meanwhile, important refurbishments...

Despite abundant reserves of fossil fuels and potential renewable energy resources, Mongolia has lagged in developing new power supply to match surging demand. Domestic electricity demand has grown by 30% to 5.5m KWh between 2008 and early 2014, but supply has grown by only 6.8%, with the balance imported from Russia. A key explanation is the long gestation period for...

A perfect storm of falling commodity prices and policy changes since May 2012 has taken its toll on mining investment, heightening fiscal pressure on the state to rebuild investor confidence. Having repealed the restrictive Strategic Entities Foreign Investment Law (SEFIL) with the new Investment Law of October 2013, which grants equal treatment to local and foreign...