TMK Energy has inked a deal with Mongolia’s Ministry of Energy to jointly study how to boost the uptake of natural gas as a domestic energy source.
The memorandum of understanding will study the inclusion of Mongolia’s vast coal seam gas resources as part of the country’s medium and long-term energy policy.
TMK and the Ministry of Energy will launch a joint study to prioritise baseline studies on using methane gas to fuel peak load power supply. This will be the first step in assessing how Mongolia’s domestic natural gas resources can be utilised to support reliable, on-demand power generation.
TMK Energy CEO Dougal Ferguson said: “This memorandum of understanding represents a significant step forward for TMK and the Mongolian government and recognition for the nascent coal seam gas industry in Mongolia.
“It signals further recognition by the government that natural gas remains a viable alternative to coal to further improve the long-term energy security of Mongolia and diversify its domestic energy sources.”
The study will help in alleviating the challenges facing Mongolia’s electricity system, which often faces supply constraints, particularly during peak demand periods in the winter months.
At such times, existing generation capacity and ageing infrastructure can be insufficient to fully meet demand, resulting in heightened reliance on imports and increased risk of supply interruptions.
As electricity demand grows, the need for additional, flexible and dispatchable domestic sources has become increasingly important.
Ferguson said natural gas has the potential to deliver a more efficient and highly responsive energy source that can reduce reliance on imported electricity.
“Overall, the Mongolian government publicly state that it is seeking to diversify its energy mix and source cleaner, reliable and affordable energy. Natural gas continues to play a key role in helping to fulfil that objective as the world continues to transition away from coal.”
TMK is developing its Gurvantes XXXV coal seam gas project in southern Mongolia and establishing itself as a key supplier of cleaner energy to support the nation’s development.
