OPEN FOR OPPORTUNITY
TMK Energy Limited is an oil and gas exploration company listed on the Australian Stock Exchange (ASX:TMK). TMK holds a 67% interest in the Gurvantes XXXV Coal Seam Gas Project located in the South Gobi Basin of Mongolia, and also holds a 20% interest in the Talisman Depp Project containing the Napoleon Structure located in the Barrow-Dampier Sub-basin.
With their focus asset, the Gurvantes XXXV Coal Seam Gas Project (the Project), just 20 km from the Chinese border, the natural gas exploration company is set to take the Mongolian and Chinese coal seam gas sector by storm.
Mongolia’s Largest CSG Discovery
In November 2022, TMK released its maiden resource on the Nariin Sukhait area within their Gurvantes XXXV Coal Seam Gast Project (the Project), delivering a staggering 1.2 trillion cubic feet (TCF) Contingent Gas Resource (2C) which was independently certified by Netherland, Sewell and Associates (NSAI).
This result saw TMK, and the Project, take the top spot as the largest coal seam gas Contingent Resource in Mongolia.
Domestic Supply Opportunity
Surrounding the Gurvantes XXXV Coal Seam Gas Project are more than 20 established electricity substations, as well as extensive established and proposed power infrastructure. The nearby domestic market is poised and ready to start using electricity generated from coal seam gas, specifically that from the Gurvantes XXXV Project.
Significant opportunity exists for TMK to cement themselves as a key supplier of gas and power to Mongolia.
Mongolia is one of the world’s fastest-growing economies largely driven by the massive wealth of mineral resources
Significant push to decarbonise Mongolia’s energy sector, with political desire to seeking greener forms of energy generation.
Mongolia currently has no gas production resulting in significant issues around energy security and reliability.
Strong political desire to develop natural gas industry to reduce pollution and address energy security, reliability, and independence.
Mongolia currently imports all gas products leaving significant growth potential for local production.
Mining accounts for 40% of Mongolia’s energy consumption, with South Gobi Region including:
Oyu Tolgoi (Rio Tinto)
Tavaan Tolgoi Coal Mines Nariin Sukhait
(60 – 70MW forecast demand)
China Supply Opportunity
Chinese Energy Market
China is the largest energy user globally with significant gas infrastructure in close proximity to Gurvantes XXXV.
China’s natural gas demand has been rising continuously for the last 20 years and is estimated to double by 2040. Additionally, China currently holds a forecast supply deficit of between 2.0TCF and 7.6 TCF per annum.
This opens the doors for enormous export opportunities for TMK.
Neighbouring Oil and Gas Infrastructure
The Nariin Sukhait area represents just 1% of the total Gurvantes XXXV Project, and the discovery is expected to bolster the development of the Project and provide a sustainable source of natural gas for both Mongolia and China.
Much to TMK’s advantage, the existing gas infrastructure of the Chinese West-East Gas Pipeline is just 300 km south of the Project in Northern China, which may result in a huge reduction in any potential production and delivery costs.
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