N.Tavinbekh, the Minister of Energy, presented the decision from the cabinet meeting today.
The issue of domestic supply of energy for the Oyu Tolgoi project was discussed today. The draft contract with the company was discussed and supported. And the “Oyu Tolgoi project electricity supply contract for domestic supply, sale and purchase of electricity” will be signed at the Ministry of Energy today at 16.00.
If the contract becomes official, USD 120 million import payment (purchase from China) will be paid to local companies. Related to this, currency outflows will decrease. We have been discussing the terms of the contract for a long time. The contract will be a legal act to attract investment needed for the Tavan Tolgoi Power Plant and technical upgrades in the energy sector. The term of the contract is twenty years. The minimum amount of energy to be purchased per annum is also set.
If the contract is signed by the current purchase price of Oyu Tolgoi, it will be a great support to the sector. Technical measures must be taken to meet Oyu Tolgoi's electricity needs from the Mongolian energy system. One of them is to build a 450-megawatt thermal power plant. This station will be built in four years. The first unit will be commissioned in 2024 to meet Oyu Tolgoi's needs. However, other sources will be built in parallel, such as main pipelines and power transmission lines in the area.
As of today, Oyu Tolgoi buys an average of 1.3 billion kilowatt-hours of electricity a year from the Inner Mongolia Energy Corporation and pays USD 120 million. So the Tavan Tolgoi power plant has a responsibility to supply that amount of energy. The contract does not restrict use. Until 2024, Oyu Tolgoi will receive electricity from its current supplier. When the underground mine reaches its full capacity, it will use 1.8 billion kilowatt-hours a year.
N.Tavinbekh, the Minister of Energy, presented the decision from the cabinet meeting today.
The issue of domestic supply of energy for the Oyu Tolgoi project was discussed today. The draft contract with the company was discussed and supported. And the “Oyu Tolgoi project electricity supply contract for domestic supply, sale and purchase of electricity” will be signed at the Ministry of Energy today at 16.00.
If the contract becomes official, USD 120 million import payment (purchase from China) will be paid to local companies. Related to this, currency outflows will decrease. We have been discussing the terms of the contract for a long time. The contract will be a legal act to attract investment needed for the Tavan Tolgoi Power Plant and technical upgrades in the energy sector. The term of the contract is twenty years. The minimum amount of energy to be purchased per annum is also set.
If the contract is signed by the current purchase price of Oyu Tolgoi, it will be a great support to the sector. Technical measures must be taken to meet Oyu Tolgoi's electricity needs from the Mongolian energy system. One of them is to build a 450-megawatt thermal power plant. This station will be built in four years. The first unit will be commissioned in 2024 to meet Oyu Tolgoi's needs. However, other sources will be built in parallel, such as main pipelines and power transmission lines in the area.
As of today, Oyu Tolgoi buys an average of 1.3 billion kilowatt-hours of electricity a year from the Inner Mongolia Energy Corporation and pays USD 120 million. So the Tavan Tolgoi power plant has a responsibility to supply that amount of energy. The contract does not restrict use. Until 2024, Oyu Tolgoi will receive electricity from its current supplier. When the underground mine reaches its full capacity, it will use 1.8 billion kilowatt-hours a year.