TMK Energy Ltd. has signed a memorandum of understanding (MoU) with Dashvaanjil Group LLC, Mongolia’s largest LPG supplier, to develop the first gas-to-power generation project at the Gurvantes XXV pilot well project in Mongolia.
The partnership will deliver a reliable, uninterrupted electricity supply to power TMK’s own operations while feeding excess energy to local users.
The initial phase of the project involves the construction of a modular, scalable power plant with a capacity of up to 1MW.
It will utilise a dual-fuel solution, running on natural gas produced from TMK’s pilot wells and supplemented by Dashvaanjil’s imported LPG products until domestic gas volumes scale up.
The project is structured across three distinct phases.
Engineering and design work has already commenced under a framework where both parties split responsibilities at their own cost. Dashvaanjil is managing downstream engineering studies while TMK handles upstream field operations.
Design work is slated for completion by the end of June, with procurement, construction, and commissioning fast-tracked for first power generation by the end of September.
TMK Energy CEO Dougal Ferguson said: “This is another milestone agreement for TMK which cements our relationship with a highly experienced local energy partner and is a major step forward in advancing our pathway for future commercial gas sales.
“The Power Project will be designed to provide TMK with a reliable long-term power solution for its Pilot Well Project, while also demonstrating the broader potential for natural gas to contribute to other domestic energy users.”
The project is expected to see strong local demand. Excess electricity generated by the 1MW facility will be sold directly to nearby industrial consumers, including local coal mining operations, providing a more secure and independent domestic energy alternative.
Power is scheduled to be produced and available for consumption by the end of the third quarter of 2026.
