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MONGOLIA


CAPITAL: Ulan Bator

MONETARY UNIT: Tughrik

REFINING CAPACITY: None

OIL PRODUCTION: 700 b/d

OIL RESERVES: Unknown

GAS RESERVES: Unknown

The Mongolian government said it was eager to facilitate the construction of an energy corridor through its territory from Russia to China.

Projects being discussed by Russia and China included a $1 billion gas pipeline from Eastern Siberia to northern China and a project to link the countries by a high-voltage electricity transmission line, possibly through Mongolia.

Both would bring money and a wider distribution of energy to impoverished Mongolia. The tax revenue alone would be up to $60 million/year.

US officials offered to support Mongolia`s efforts but urged the nation to speed up privatization of the energy sector.

The US had given Mongolia about $80 million in aid since 1990, much of it to modernize its aging, Russian-built energy sector.

Mongolia`s National Security Council agreed in principle to sell parts of the energy infrastructure. The government was drafting a law to facilitate privatizing and investing in the energy sector.

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