Under the deal, Jens will install the gas-fired power plant, which is expected to be operational by April. In return, TMK must deliver a minimum 5000 cubic metres of gas per day – or about 0.2 terrajoules – by June.
When those targets are nailed, Jens will have the right to buy up to 15,000 cubic metres of gas per day for a two-year period, with the option for a further two-year extension.
The agreement paves the way for Gurvantes to become Mongolia’s first coal seam gas-to-power project, with electricity set to flow from the project to the local grid in the next six to 12 months.
With all six wells on track to hit key operational milestones and 100 per cent ownership of the gas field under its belt following the acquisition of a 33 per cent stake from ASX-listed Talon Energy in 2023, TMK is setting its sights on becoming a key player in the region’s energy future.
Given it has a strategically positioned project near northern China’s gas pipelines that is brimming with development potential, it’s not hard to see why.
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