The Chinese company China National Chemical Engineering & Construction Corporation Seven Ltd (CC7) has shown interest in projects related to the production of gasoline, diesel fuel, and synthetic natural gas from lignite in Mongolia.
On March 24, 2026, during the official visit of the Speaker of the Parliament, Uchral Nyam-Osor, to China, the Minister of Industry and Mineral Resources, Damdinyam Gongor, held a meeting with representatives of CC7. They discussed potential cooperation in the field of synthetic natural gas production from coal, as reported by MiddleAsianNews.
During the meeting, the Chinese side presented a preliminary feasibility study, indicating a potential return on investment in the range of 13-16% and a payback period of 7 to 9 years. They also expressed their readiness for further cooperation.
The project, which aims to reduce Mongolia's dependence on fuel imports and increase the added value of coal, will be implemented in the Baganuur area. Its implementation is expected to require investments of $1 billion and will allow for the production of 200,000 to 300,000 tons of gasoline and diesel fuel, as well as 150-200 million Nm³ of synthetic natural gas annually. The production process will include deep processing of lignite using proven technologies such as CTL+SNG gasification, Fischer-Tropsch synthesis, and methanation.
The parties agreed that this project fully aligns with the strategy for creating an industrial and technological park based on the Baganuur mine, as outlined in Mongolia's government documents. The implementation of the project could significantly impact the development of the country's chemical industry, meet the demand for petroleum products and nitrogen fertilizers, and reduce air pollution levels.
