Mongolian President Ukhnaagiin Khurelsukh has praised India’s leadership and significant contributions to the global energy transition. During a state visit to India, he highlighted the strategic importance of the Mongolia-India oil refinery project in advancing Mongolia’s energy security and economic development, while also signaling a deeper collaboration on renewable energy.
Mongolia-India Oil Refinery Project and the India energy transition
During his visit in October 2025, Mongolian President Ukhnaagiin Khurelsukh lauded India’s role in the global energy shift, underscoring the strategic importance of the Mongolia-India oil refinery project. Initially launched in 2018, the project is now backed by an updated $1.7 billion line of credit from India, making it the country’s largest single development partnership project globally.
“This project will be an important symbol of the strategic partnership between Mongolia and India and will make a significant contribution to Mongolia’s energy security and economic development,” President Khurelsukh said.
The oil refinery, located in Dornogobi province and slated to begin operations in 2028, is expected to produce 1.5 million tonnes of oil annually. This capacity is designed to meet Mongolia’s domestic fuel needs, drastically reducing its dependence on imports. Beyond this cornerstone project, Khurelsukh expressed keen interest in collaborating with India on renewable energy initiatives, particularly in solar and wind energy.
Mongolia’s Renewable Energy Potential in the India energy transition
President Khurelsukh emphasized Mongolia’s vast potential for renewable energy, noting that 25% of the country’s electricity is already generated from renewable sources. He highlighted Mongolia’s immense wind and solar resources, particularly in the Gobi Desert, expressing confidence in the country’s ability to not only become self-sufficient but also a net exporter of clean energy.
“We can produce more renewable energy than we consume and export clean energy to the region,” Khurelsukh stated. “We are confident that this will make a valuable contribution to the future of energy supply in the region.”
Mongolia is actively working to expand its renewable energy infrastructure, a move demonstrated by actions like the recent Mongolia solar tender for a new plant in Khovd province. With ambitious goals to increase its solar capacity, the nation is looking to attract foreign investment, particularly from India. The country’s vision includes large-scale Mongolia renewable energy exports, leveraging its strategic location and resources to power neighboring regions. These efforts reflect Mongolia’s ambitions to rise in solar energy and become a key player in the regional green transition.
India’s Role in Mongolia’s India energy transition
India’s involvement in Mongolia’s energy sector is a key example of its broader efforts to support global energy transitions. Describing India as a “reliable partner,” Prime Minister Narendra Modi has reaffirmed India’s commitment to Mongolia’s development. The oil refinery project is a cornerstone of Mongolia’s energy security strategy, and India’s financial support has been instrumental in its progress.
Beyond fossil fuels, India’s interest in Mongolia’s renewable energy sector further underscores the potential for deep collaboration. President Khurelsukh officially expressed Mongolia’s interest in joining the India-led International Solar Alliance (ISA), a move that would integrate Mongolia into a global network dedicated to solar power development. As Mongolia continues to develop its renewable resources, India is poised to provide crucial technical expertise, from understanding the basics of solar panel manufacturing to navigating the complex supply chains for solar panel raw materials.
The Future of Mongolia-India Energy Cooperation for India energy transition
The Mongolia-India oil refinery project is a powerful symbol of the strong and evolving strategic partnership between the two “spiritual siblings.” As the project progresses towards its 2028 launch, it is expected to have a profound impact on Mongolia’s energy sector and overall economic development.
Looking ahead, the partnership is set to expand beyond the refinery. Both nations have agreed to deepen cooperation in areas like oil and gas exploration and the mining of critical minerals. In addition to the oil refinery, Mongolia is exploring every opportunity to expand its renewable energy capacity, aiming to become a regional leader in clean energy production and export with India’s support.
This cooperation is expected to contribute significantly to the global energy transition by reducing greenhouse gas emissions and amplifying the voice of the Global South in climate discussions. The partnership between Mongolia and India is a testament to the power of international collaboration in addressing the world’s most pressing energy challenges. The journey towards energy independence requires deep knowledge of everything from geopolitics to the technical details of the solar panel manufacturing process. To learn more about what it takes to build a solar energy future, explore our free e-course on solar panel manufacturing.