Energy

While Mongolia is rapidly becoming world famous for the large deposits of gold, copper and coal at its mines, a less well-known investment story is that of the country’s hydrocarbons sector. Recent surges in exploration promise significant expansion of the sector, and the government is also looking at developing its own downstream operations. The...

The power and heating, hydrocarbons, renewable and nuclear segments of Mongolia’s energy structure are all undergoing important changes. These are occurring as the country tries to move away from its old dependency on one major fuel source – coal – and on its two giant neighbours – Russia and China.

With much of Mongolia’s current electricity and heating needs being met by coal, energy planners have in recent times been looking much more closely at diversifying the mix. A front-runner for future generating capacity is renewable energy (RE), with solar and wind power both likely to be major providers. Indeed, the country’s first new power...

When it comes to petroleum products, Mongolia is completely dependent on imports from its neighbours – and particularly its northern neighbour, Russia. Meanwhile, its domestic crude oil production currently heads south to refineries in China. Recognising that this arrangement is far from optimal for Mongolia, the oil and gas downstream sector is...

While in the early stages, ambitious plans to develop a nuclear power industry will likely be put into motion in the years ahead, as will developments to expand the country’s uranium mining assets. This could position Mongolia as a leading player in the Asian nuclear fuels market, with high demand for feedstock and power.