The transport and distribution channel of Petrovis Group, the leader of the oil market in Mongolia, covers more than 6.0 million kilometers per year and serves its customers with high-quality and reliable fuel through more than 360 gas stations located in all corners of the country.

We import oil products from the Russian companies Rosneft, Neftkhimservice, Gazpromneft, and the Chinese company Petrochina and transport them through the widest network from 11 warehouses with a total storage capacity of more than 124.0 million liters.

BRIEF INFORMATION ON THE CURRENT SITUATION WITH THE IMPORT OF PETROLEUM PRODUCTS

Mongolia imports more than 90 percent of its main fuels, gasoline, and diesel, from Russia by rail through the ports of Naushki-Sukhe-Bator and Solovyovsk-Ereentsav, while the required volume of oil products for the western provinces are imported by road through the border ports of Tashanta-Tsagaanuur and Khandgait-Borshoo. In addition, a small percentage is imported from countries such as China and South Korea by rail through the port of Ereen-Zamyn-Uud. High-octane Euro-5 quality gasoline and diesel fuel are sometimes obtained from Belarus and Lithuania through Russia.

REGARDING GASOLINE A80

Currently, A80 gasoline is no longer used inside the Russian Federation, and only the Angarsk plant and the Orsk plant produce a small amount for export, which we import. In the future, there is a direction to completely remove this product from production.

In total, 62,600 tons of A80 gasoline were imported to Mongolia in 2021, and consumption of A80 gasoline is expected to decrease over the years.

REGARDING GASOLINE A92

Petrovis Group imports most of its Euro 3 A92 gasoline from the Angarsk plant in Russia and Euro 5 A92 gasoline from the Russian plants in Yaisk, Orsk, Taneko, Taif, and the Chinese Petrochina plants.

In total, 481,400 tons of A92 gasoline were imported to Mongolia in 2021. In the future, demand for A92 gasoline, including Euro 5 A92 gasoline, is expected to increase as the number of vehicles increases.

REGARDING GASOLINE A95

Petrovis Group purchases A95 gasoline of Euro-5 standard from the Angarsk plant in Russia in the required volumes. In total, 27,600 tons of Euro5 A95 gasoline were imported to Mongolia in 2021.

In the future, due to the increase in the number of cars using A95 gasoline in Mongolia, it is expected that the consumption of A95 gasoline will gradually increase.

REGARDING GASOLINE A98 AND A100

Petrovis Group purchases Euro5, A98, and A100 gasoline from the Angarsk plant in the required volumes. We also buy from the Russian Gazprom Neft plant in Omsk, from Belarus and Lithuania. In total, 1,400 tons of A98 Euro5 gasoline were imported to Mongolia in 2021. In the future, the consumption of A98 gasoline is expected to increase as the number of cars using A98 gasoline in Mongolia increases.

REGARDING DIESEL FUEL

Petrovis Group imports most of its Euro 2 diesel fuel from the Russian Angarsk, Nizhnevartovsk, Purneft, and Krasnoleninsk plants of the Rosneft company, as well as from the Yaya plant of the Neftekhimservice company. However, Euro-5 gasoline and diesel fuel are imported from Rosneft's Russian plants in Angarsk and Achinsk, as well as from Gazpromneft-Omsk, Tatneft-Taif, Lukoil-Perm, and also from the Chinese company PetroChina. Sometimes gasoline and diesel fuel of the Euro5 standard are imported from Belarus and Lithuania, but at present, their consumption is limited due to high prices.

In total, 983,000 tons of diesel fuel were imported to Mongolia in 2021, and diesel fuel consumption is expected to increase year by year with the economic recovery of the mining sector and an increase in the number of vehicles.

Rosneft - Main supplier:

The leader of the Russian oil industry, Rosneft, is the largest joint-stock oil company in the world, accounting for 6 percent of all global oil production, its 13 major refineries processed a total of 93 million tons of oil in 2020.

The Russian company Rosneft is the main supplier of gasoline and diesel fuel for Petrovis Group. Shipments are carried out from the Angarsk and Achinsk plants of Rosneft, which are conveniently located geographically and have advantages over other manufacturers in terms of transportation costs.

Since June 2014, we have been working with Rosneft under a long-term contract for the supply of petroleum products, which is renewed every five years.

The contract not only guarantees the monthly mandatory volume of deliveries to ensure the reliability of supply but also the price formula is aligned with the price of gasoline and diesel fuel on the Singapore Exchange, so the price of oil and petroleum products in the world market is often cheaper, it became possible to predict prices. It is also agreed that prices are no longer subject to influence due to changes in Russian export and other taxes, price fluctuations in the domestic market, and changes in railway tariffs.

Changes in Rosneft border prices - according to the formula:

Petrochina

We have been working directly with PetroChina, a subsidiary of China National Petroleum Corporation (CNPC) for many years. Euro5 A92 gasoline, Euro5 A95 gasoline, and Euro5 diesel fuel are usually shipped by rail from Petrochina's Hohehot plant via the border port of Zamyn-Uud. However, due to the difference in gauge, oil products have to be reloaded from a Chinese tank car to a Mongolian tank car through the transshipment complex in Zamyn-Uud, which makes imports more expensive, and the number of domestic tank cars in Mongolia is very limited, which is the main reason for the limited size of imports from China.

Gunvor

The Gunvor company, founded in 1999, is one of the largest international traders in the field of petroleum products and supplies gasoline and diesel fuel from the Russian companies Gazpromneft Omsk, Neftekhimservice Yaisk, the Lithuanian company Orlen-Litua Mayekai and the Belarusian Naftan and Mozyr.

Since 2009, Petrovis Group has been actively cooperating with Gunvor, which has remained one of the few major suppliers chosen for the advantages of price and payment terms.

Trafigure

Trafigura was founded in 1993 and is one of the largest international trading companies and supplies gasoline and diesel fuel from the Russian plants Gazpromneft-Omsk, Neftekhimservice Yaisk and Diteko, Chinese plants Petrochina Hohhot and Sinopec Yangshan, and also South Korean plants "GSCaltex", "S-Oil" and "HyundaiOilbank".

We have been actively cooperating with Trafigura since 2013, and the advantages of their prices and payment terms have led to such long-term cooperation. 

SIBET

SIBET is the head trading company of the Yaysk plant of Neftekhimservice, and its main advantage is regular, reliable, and fast deliveries of Euro5, A92 gasoline, and diesel fuel.

DW Oil

Company DW Oil is one of our reliable suppliers, and since June 2011 we started buying A92 and A95 gasoline from the German company DW Oil. Typically, A80, A92, and A95 grade gasoline and diesel fuel from the Yaysk and Orsk plants of Neftekhimservis of Russia are delivered by tankers along the routes through Naushki and Solovievsk, as well as through Biysk to the city of Ulgiy and through the Abakan and Miniusiysk terminals to the city of Ulangom.

DW Oil also supplies bitumen grade 90/130, special oils and lubricants produced by the Gazpromneft-Omsk plant in 1 ton packages.

OXEN BA GIRAN

OXEN & GIRAN started supplying petroleum products to Mongolia for the first time on behalf of Vitol, one of the largest international traders, and in recent years, supplies have become more frequent and this company has already become one of our reliable and good suppliers.

Mostly gasoline A80, A92, Euro5 A92, Euro5 A95, Euro5 A98 and diesel fuel from Russian refineries Tatneft Taneko Nizhnekamsk (4810 km to Naushki - 16 days by rail), Taif-NK, Orsk (4528 km to Naushki - 15 days by rail road), Rosneft Purneft, Nizhnevartovsk, Lukoil Perm (4461 km to Naushki - 15 days by rail) of the Belarusian plant Slavneft Mozyr (6606 km to Naushki - 22 days by rail) are supplied by rail along the routes through Naushki and Solovyovsk, and from Biysk to Ulgii, from Abakansky and Miniusysky terminals to Ulaangom continue to be delivered by tank trucks.

Others

In addition to the above suppliers, we cooperate on the import of petroleum products on the best terms by selecting potential suppliers.