TMK is investigating options for early commercialisation of the upcoming pilot production program at its Gurvantes XXXV coal seam gas project in Mongolia.

The company has outlined the potential for onsite power generation of up to 10 megawatts using gas produced from the three planned pilot production wells to power operations at the project and adjacent mining operations.

Studies are underway to grow this power generation capacity to meet about 70MW of local demand while other commercialisation concepts being considered by TMK Energy (ASX:TMK) include CNG (compressed natural gas), mini LNG (liquefied natural gas) and large scale power generation in the South Gobi province.

Discussions are also continuing with PetroChina on strategic partnership and longer-term commercialisation opportunities.

“Operations for the upcoming Pilot Well Program are in full swing with construction of the camp well underway and long lead items and equipment being delivered to site in preparation for the commencement of drilling in early April,” chief executive officer Brendan Stats said.

TMK Energy asx tmk
Exploration camp at Gurvantes XXXV coal seam gas project. Pic: Supplied

“We are currently in advanced discussions with the local mining operator on how to utilise the valuable resources of produced gas and water from the Pilot Well Program and we aim to formalise this shortly.

“As we look forward and the project advances, we have also commenced feasibility studies on power generation to meet the immediate power needs in the local area which is up to 70MW, as well as other early commercialisation projects such as CNG and mini LNG options.”

Successful exploration begets big gas resource

The company’s successful 2022 drill program allowed it to define a 1.2 trillion cubic feet Contingent Gas Resource (2C) certified for the Nariin Sukhait area.

Its upcoming pilot program, which is funded by partner Talon Energy (ASX:TPD) to a cap of to a cap of US$3.15m under the second stage of its farm-in, will be located close to the Snow Leopard-2 exploration well that intersected 91m of gassy coal in the upper and lower coal seams.

The pilot program is expected to take about eight weeks to complete drilling of the three production wells and install pumps.

These will then be tied into the surface facilities, which includes metering skids, a flare stack and water disposal facilities, and then placed on pump to commence the process of pressure drawdown prior to gas breakout.

Once commissioned, the pilot wells will be operated for about six months in order to understand the water and gas production profiles.



This article was developed in collaboration with TMK Energy (ASX:TMK), a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.