Mongolia continues to invest in the development of alternative gas production. Australia’s Jade Gas has cleared a major regulatory hurdle that is pushing ahead with the start of commercial coalbed methane production. While we are not talking about a full license, the permission allows us to move on to the next stage: placing reserves on the state balance sheet and preparation of a detailed field development plan.
According to geological exploration, the average thickness of gas-bearing horizons reaches 60 meters, and the maximum is 124 meters. At the start of the project, they plan to drill up to 175 wells. In the long term, the number of wells could increase to 800, and the field’s lifespan could exceed 30 years.
For Mongolia, coalbed methane could become an important domestic gas source. It is planned to be used in the transport industry, energy and mining enterprises, which will reduce dependence on external supplies. A similar project in the country is already being implemented by TMK Energy with the participation of Chinese partners.
Jade Gas takes another step towards creating new gas sector in Mongolia. The successful implementation of the project will provide the country with clean fuel and strengthen its energy independence.
Source: @Coala_russia
Image: Jade Gas
