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6 November 2019

First Russian Gas Sent to Mongolia

Gazprom Export supplied Russia’s first small-scale LNG cargo to its new market – Mongolia. On October 22, the first ever rail LNG shipment was loaded in special cryocontainers in Yakutsk. It crossed the Russian-Mongolian border on November 2, and on November 4, arrived in Ulaanbaatar. The total size of the cargo was 36.0 tons of LNG (equivalent to approx. 50,000 cm of natural gas).

Siberian fuel and energy company (SITEK) was the shipper of the cargo. The buyer was the Mongolian company UB Metan. The LNG will be used as motor fuel on public transport in Ulaanbaatar, the capital of Mongolia. In total, according to the buyer, the demand for LNG in Mongolia in 2020 can reach 8,000 tons (equivalent to 11 mcm of natural gas).

“It is pleasant that Mongolia has now joined the list of the countries where Russian gas is delivered. The use of natural gas on transport is one of the most promising factors of gas consumption growth. I am sure that the residents of Ulaanbaatar will appreciate the environmental benefits of LNG as motor fuel, " said Deputy Chairman of the Gazprom Management Committee, Director General of Gazprom Export Elena Burmistrova.

“Since 2017, UB Metan has been successfully developing the use of natural gas on the Mongolian market. We are the first and only company in the country that imports natural gas and refuels vehicles. In cooperation with Gazprom Export and SITEK, we delivered LNG from Russia to Mongolia by rail in our own tank containers for the first time. This is a significant event not only for our company, but for the economic cooperation of our countries as well. We are focused on expanding this cooperation, " said the Director of UB Metan Bold Basjargal.

“The LNG demand on the Mongolian market is rapidly growing. The new LNG export route created by Gazprom Export and SITEK for the first time brings Russian gas to new markets via railway transport, allows to involve Russian railways and to increase the demand for cryocontainers produced in Russia, " said Director General of SITEK Georgy Trofimov.

 

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