It is reported that Mongolia is seeking for signing gas contract with China in August which will expand energy supply in China, the second largest economic entity in the world and reinvigorate foreign investments in Mongolia.
Recently, when Erdenebulgan Oyun, the vice minister of Ministry of Mine of Mongolia was interviewed in Ulan Bator, he showed that the contract included two coal gas plants whose 95% of output would be transmitted to China through pipes. The plants are estimated to put into production in 2019.
On the same day, when Chuluunbat Ochirbat, the vice minister of Ministry of Economic Development was interviewed in Tokyo, he showed that the preliminary agreement would be signed with Sinopec when Xi Jinpping, the President of China visiting Mongolia in August. However, consensus of final details on cost, scale and exploitation of coal needed by plants still needs to be reached by both Mongolia and China.
It points that the gas supply contract between Mongolia and China will meet the increasing domestic demands for energy in China in further, after China signing gas supply contract which was worth for 400 billion USD with Russia in May. Meanwhile, foreign investments in Mongolia are decreased by 64% in this year. The signature of gas supply contract will help Mongolia relieving the dependency on gold and copper exporting in Oyu Tolgoi.
