5,000 tons of gasoline will be imported from South Korea next month
This is an interview with the CEO of M-Oil Group R. Batbayar, about the supply and price of gasoline that will soon to be commercially imported from South Korea.
-What are the advantages of the Euro-4 standard gasoline compared to gasoline from Russia?
-We have imported 1,800 tons of gasoline and it is currently being sold at four of our gas stations. Drivers may purchase this newly imported gasoline in Tasgani Ovoo, the 13th district, the new Trauma and Injury Center, and at the Darki Ekh and Sansar districts’ intersection.
This gasoline burns effectively and releases less toxic fumes compared to other gasoline available in Mongolia. It is friendly to the environment. The gasoline we currently use today is of Euro-2 standard.
-For how many years will the contract between you and the South Korean SK Energy last? How much gasoline is to be imported through as part of the contract?
-SK Energy is one of the five biggest companies in South Korea and is the largest company there in terms of oil products. We are allowed to import gasoline as we see fit. In mid April. 4,000 to 5,000 tons of gasoline will be imported. We are also planning to import Euro-4 standard diesel gasoline. The amount of gasoline we are importing from SK Energy is very small for the company.
Gasoline depletion and unstable prices in the past years gave us all the reasons to find a third source of gasoline for Mongolia. We began talks with South Korea about gasoline importation in July 2011. Russia had internal struggles and had no choice but to make Mongolia a secondary priority. Ministries and the Petroleum Authority supported us. We made the first agreement in February 2012 and the first shipment of gasoline has just arrived. Company officials said that they also had hard times with insufficient energy and gasoline; and support was given from the South Korean Government.
-In what intervals will the gasoline be imported in the future?
-The monthly import is set at 1,800 tons, but as I said, it can be changed depending on the demand. Imports also depend on the technical capabilities of the Zamiin Uud checkpoint. Right now, it has the capability of importing a maximum of 10,000 tons of gasoline at one time.
The availability of gasoline transportation trains can also affect the amount of gasoline intake. The possibility of transporting gasoline on 40 to 50 trains is not high. The railway administration supported our plan and had 20 trains ready beforehand. With the help of many factors, we were able to import the first of many gasoline imports to Mongolia in such a short time.
-What can you tell us about the environmental effects of this gasoline?
-We have completed research and studies into the gasoline we were going to buy. Officials and experts from South Korea came to Mongolia and studied a sample taken from the gasoline we use today, and they said, ‘we cannot produce this gasoline in Korea. We used to produce it ten years ago.’ They said that they couldn’t bring back the old production methods to produce this type of gasoline. In return, I told them that we were not asking them produce a specific type of gasoline just for us. We simply wanted to buy the gasoline that is exported to Japan and Singapore.
As I said, this gasoline is Euro-4 standard, which releases a lot less toxic fumes when burned compared to other gasoline. In short, we have made an improvement to our gasoline in Mongolia.
-What is the price per liter of this gasoline?
-The gasoline will be sold at the price set by the Singapore Stock Exchange with transportation fees added to it. This is the price that other Asian countries buy gasoline at. The price for importing one barrel of this gasoline is USD 144. This product is high quality and we will not complain about it being expensive. It is generally profitable so the price is guaranteed to be very stable.
-Does opening a third source of gasoline mean the overall price of fuel will be reduced?
-This is an emergency source of gasoline. It is not possible to supply all of Mongolia with this gasoline. The amount of gasoline brought into Mongolia from South Korea is limited by the technical ability and efficiency of the Zamiin Uud checkpoint. At full capacity, the checkpoint can only supply Mongolia with 5 to 8% of its annual demand.
Our new source of gasoline will be mainly used in critical times of national fuel depletion but opening a new source of fuel is a big improvement.
-What are the advantages of the Euro-4 standard gasoline compared to gasoline from Russia?
-We have imported 1,800 tons of gasoline and it is currently being sold at four of our gas stations. Drivers may purchase this newly imported gasoline in Tasgani Ovoo, the 13th district, the new Trauma and Injury Center, and at the Darki Ekh and Sansar districts’ intersection.
This gasoline burns effectively and releases less toxic fumes compared to other gasoline available in Mongolia. It is friendly to the environment. The gasoline we currently use today is of Euro-2 standard.
-For how many years will the contract between you and the South Korean SK Energy last? How much gasoline is to be imported through as part of the contract?
-SK Energy is one of the five biggest companies in South Korea and is the largest company there in terms of oil products. We are allowed to import gasoline as we see fit. In mid April. 4,000 to 5,000 tons of gasoline will be imported. We are also planning to import Euro-4 standard diesel gasoline. The amount of gasoline we are importing from SK Energy is very small for the company.
Gasoline depletion and unstable prices in the past years gave us all the reasons to find a third source of gasoline for Mongolia. We began talks with South Korea about gasoline importation in July 2011. Russia had internal struggles and had no choice but to make Mongolia a secondary priority. Ministries and the Petroleum Authority supported us. We made the first agreement in February 2012 and the first shipment of gasoline has just arrived. Company officials said that they also had hard times with insufficient energy and gasoline; and support was given from the South Korean Government.
-In what intervals will the gasoline be imported in the future?
-The monthly import is set at 1,800 tons, but as I said, it can be changed depending on the demand. Imports also depend on the technical capabilities of the Zamiin Uud checkpoint. Right now, it has the capability of importing a maximum of 10,000 tons of gasoline at one time.
The availability of gasoline transportation trains can also affect the amount of gasoline intake. The possibility of transporting gasoline on 40 to 50 trains is not high. The railway administration supported our plan and had 20 trains ready beforehand. With the help of many factors, we were able to import the first of many gasoline imports to Mongolia in such a short time.
-What can you tell us about the environmental effects of this gasoline?
-We have completed research and studies into the gasoline we were going to buy. Officials and experts from South Korea came to Mongolia and studied a sample taken from the gasoline we use today, and they said, ‘we cannot produce this gasoline in Korea. We used to produce it ten years ago.’ They said that they couldn’t bring back the old production methods to produce this type of gasoline. In return, I told them that we were not asking them produce a specific type of gasoline just for us. We simply wanted to buy the gasoline that is exported to Japan and Singapore.
As I said, this gasoline is Euro-4 standard, which releases a lot less toxic fumes when burned compared to other gasoline. In short, we have made an improvement to our gasoline in Mongolia.
-What is the price per liter of this gasoline?
-The gasoline will be sold at the price set by the Singapore Stock Exchange with transportation fees added to it. This is the price that other Asian countries buy gasoline at. The price for importing one barrel of this gasoline is USD 144. This product is high quality and we will not complain about it being expensive. It is generally profitable so the price is guaranteed to be very stable.
-Does opening a third source of gasoline mean the overall price of fuel will be reduced?
-This is an emergency source of gasoline. It is not possible to supply all of Mongolia with this gasoline. The amount of gasoline brought into Mongolia from South Korea is limited by the technical ability and efficiency of the Zamiin Uud checkpoint. At full capacity, the checkpoint can only supply Mongolia with 5 to 8% of its annual demand.
Our new source of gasoline will be mainly used in critical times of national fuel depletion but opening a new source of fuel is a big improvement.
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