en.Wedoany.com Reported - Australian listed company Jade Gas Holdings (Jade) has announced that its Tavan Tolgoi Coal Bed Methane (TTCBM) project has received the first reserve approval from the Mineral Resources Council of Mongolia (MRC). This marks the first approval of coal bed methane reserves in Mongolia, with the company obtaining approval for recoverable natural gas reserves of 165 cubic meters of net recoverable gas in the proved and probable categories.

This approval represents a significant milestone for both the company and Mongolia, signaling the culmination of extensive exploration and conceptual development planning work undertaken by Jade for the TTCBM project in the South Gobi region. Following the completion of the evaluation program and the approval of the assessment report in April this year, Jade submitted its initial reserve registration application to the MRC, a crucial regulatory step required to verify and register the company's first natural gas reserves.

Notably, this reserve registration covers only a small portion of Jade's project area, approximately 4.2 square kilometers out of the total 60 square kilometers of the Red Lake gas field. The MRC's registration of Jade's initial gas-bearing coal seam section recognizes the reserves of the TTCBM project and lays a critical foundation for subsequent permitting and development activities.

Next, Jade will submit the development and operation plan for the TTCBM project, which will serve as a formal development blueprint, outlining the project scope, infrastructure design, production forecasts, and environmental management commitments. Once approved, Jade can apply for an extraction license, transitioning from the evaluation phase to commercial gas field development and large-scale commercial natural gas production. The company will simultaneously conduct environmental and social impact assessments and prepare other regulatory documents required to support the exploration license application.

According to Jade's development plan, the first phase envisions drilling activities for up to 175 wells, positioned as a medium-scale, modular development focused on supplying liquefied natural gas to the local transportation network, with the option to supply gas to mining operations and industrial power users. Broader gas field development further considers a scale of approximately 800 wells, with a potential project lifespan exceeding 30 years.

While advancing the regulatory process, Jade is also pursuing commercial collaborations, engaging with domestic and international parties, including energy offtakers and infrastructure providers, to explore various participation structures for the TTCBM project. These actions align with Jade's strategic objective to establish a scalable natural gas development project, providing cleaner, locally produced energy for Mongolian industry and households over the long term, reducing reliance on unreliable imports, and supporting the country's decarbonization goals.

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