Energy
From The Report: Mongolia 2012
View in Online Reader

Mongolia’s energy sector has long depended entirely on the one resource it possesses in abundance: coal. This paradigm is unlikely to change drastically in the near future, but the country is looking to diversify its energy portfolio while modernising infrastructure. Solar and wind power are candidates for development, given Mongolia’s 257 cloudless days per year and its wide, open spaces. With major reserves of uranium, moreover, nuclear power is another potential avenue to be pursued, albeit in the long-term. In the short term, Mongolia is focused on building out its electricity grid to handle the energy demands of various mining projects and the increasing adoption of modern amenities in its cities.
This chapter features interviews with John Rice, Vice-Chairman, GE; and D. Enkhchimeg, CEO, Petrovis.

Articles from this Chapter

Overview

Renewed interest: Rapidly growing industrial and urban centres fuel demand for power
OBG
plus

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. The energy market is beginning to open up, with huge potential for investors. Oil-exploration outfits, solar panel manufacturers, power plant experts and dam builders could all play a key…

Analysis

Nuclear plans: Uranium deposits have opened up new opportunities
OBG
plus

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. Several challenges remain, however, not the least of which is developing the country’s expertise and human resources in the sector. While it may take time to achieve…

Interview

OBG talks to John Rice, Vice-Chairman, GE
OBG
plus

Interview:John Rice In which sectors can Mongolia develop a competitive advantage over its regional neighbours? JOHN RICE: Mongolia has a small population with a lot of natural resources, and in my opinion, a very bright future. However, Mongolia must continue to invest in and advance its education, training and leadership development. The interest that many companies have shown in the country – specifically in Mongolia’s raw materials wealth – must ultimately contribute and benefit…

Interview

OBG talks to D. Enkhchimeg, CEO, Petrovis
OBG
plus

Interview:D. Enkhchimeg With its oil exports currently minimal, what is Mongolia’s hydrocarbons potential? ENKHCHIMEG: Exploration in Mongolia is at too early a stage to make precise assessments of its hydrocarbons potential. Some US experts estimate we may have between 4bn and 6bn barrels of recoverable oil, while the Petroleum Authority of Mongolia (PAM) estimates 870m barrels. These figures are based on preliminary investments, and clearly there is a huge difference between the two estimations. As…

Analysis

Striking black gold: Going underground to maximise oil potential
OBG
plus

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 hope is that Mongolia will be able to supply a significant amount of its own petroleum needs, while ending dependency on its neighbours for its refined…

Analysis

Renewable results: Using open space to generate wind and solar power
OBG
plus

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 generation project in 30 years, now under way, is a 50-MW wind farm. RATIONALES AND FRAMEWORKS: The reasoning behind Mongolia’s push for RE is…

Analysis

Refined developments: Moving to reduce costly imports by building domestic production
OBG
plus

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 gearing up for some big changes in the years ahead. Plans for a new refinery, pipeline links and, in the longer term, a major domestic petrochemicals…