This is one of Mongolia's key projects to strengthen its infrastructure, and position in the global economic oil trade.

The construction of the pipeline agreement, which was signed in April of 2022, has been a significant step towards Mongolia's energy independence.

[1] Mongolia's petroleum industry first gained pace in the early 20th century, following the Soviet collapse.

[2] Supported by a soft loan from the Government of India, as part of the broader goal to achieve energy independence and reduce Mongolia's reliance on foreign oil, the start of the pipeline construction was launched at a ceremony held on 28 April 2023, with expectations of completion by the third quarter of 2025.

[3][4] The pipeline spans over a length of 530 km, passing through desserts, and mountainous regions; as well as populated communities over nine districts, in three unique provinces.