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Ferguson said water production is continuing at rates of over 500 barrels per day, which is what is required to continue depressurising the reservoir toward desorption. Dewatering helps to lower the pressure, causing the gas to desorb from the coal seams. Recent analysis confirmed the majority of the water is being produced from the coal seams, not from adjacent aquifers or non-coal bearing zones, providing a strong indication of coal seam permeability.
A technical workshop was held in Beijing last week, where the results of the recent work was reviewed by TMK’s management and J-Energy, the company’s strategic alliance partner.
Notably, the workshop validated the merits of the project and confirmed the economic potential of the project’s massive gas resource. TMK plans to use knowledge garnered from the workshop to assist with implementation of its 2026 work program and company budget, in addition to formulating a strategic plan to how best commercialise its gas when significant quantities of gas are produced.
It expects to produce gas at a commercial scale next year from the project spanning 60 square kilometres in the Nariin Sukhait area of Mongolia’s vast countryside. The company’s contingent resource (2C) of 1214 billion cubic feet (BCF) of natural gas is Mongolia’s biggest. The project currently contains a 5300BCF prospective resource across its total 8400-square-kilometre ground.
Management believes the reservoir modelling will allow it to move quickly towards a pre-feasibility study, which will include well spacings and design, predict gas drainage patterns and forecast productivity of the projects’ Lucky Fox wells.
Like many nations, Mongolia is keen to transition away from energy produced from burning coal. Coal seam gas is considered ideal as a “clean transition fuel” because it produces about half the carbon emissions produced by coal-generated electricity and burns cleaner than other fossil fuels.
With the project close to the global powerhouse that is China and its northern gas pipelines, the company is in a premier position as a future producer of a commercial scale gas supply.
TMK believes its Gurvantes XXXV project can become a regionally significant, reliable source of natural gas for both Mongolia’s domestic market and the wider regions energy infrastructure.
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