Watching The World: Oiling the road To Ulaanbaatar

10/20/2008
The Japanese government, aiming to reduce the country’s dependence on oil and natural gas, has cast its eyes far and wide for new sources of energy.Oil and gas are still playing a part in Japan’s energy diplomacy as in Mongolia, where a deal was struck for a 44,000 b/d refinery—the nation’s first—to be built in Darhan with Japanese assistance.The aim of the refinery is to reduce Mongolia’s dependence on foreign oil products. That’s a step in the right direction, perhaps, but it does not change the fact that Mongolia so far has no oil resources of its own.As a result, Mongolia’s president recently forged an agreement with his counterpart in Kazakhstan fo...

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