TMK, in collaboration with the Ministry of Energy of Mongolia, has begun developing strategies for the extraction and processing of methane generated in coal seams. Details can be found here.
The Ministry of Energy of Mongolia and TMK Energy have signed an agreement aimed at exploring the possibilities of rapidly integrating natural gas into the country's energy system. This could significantly accelerate the company's development if permission is granted to use methane from coal seams as an additional fuel.
“The Memorandum of Understanding (MoU) involves analyzing the feasibility of integrating natural gas, including methane from coal seams, into Mongolia's medium- and long-term energy strategy,” the official statement notes.
According to the plan, the initial phase of the joint research will focus on methane as a source of electricity during peak loads, ensuring reliable power supply during periods of high demand. The first studies will concentrate on using methane from coal seams to meet peak loads and identifying ways to optimize the country's energy resources.
TMK, which is involved in the methane extraction project from the Gurvantes XXXV coal seam in southern Mongolia, has excellent opportunities to profit from increased use of gas as an alternative energy source alongside coal.
Mongolia is facing growing challenges in its energy system, experiencing difficulties with power outages during the winter months when the demand for heating and production sharply increases.
Existing capacities and outdated infrastructure make it difficult to meet the increased demand, leading to power supply disruptions. The need for additional flexible fuel sources is becoming evident to ensure supply stability during peak hours, and natural gas appears to be the best option to address this issue.
The Ministry is responsible for the development, management, and regulation of Mongolia's energy sector, as well as ensuring the reliability of systems and supporting national development goals.
Turning to the rich reserves of methane from coal seams could be a key solution for ensuring Mongolia's electricity supply in the future.
“This memorandum of understanding symbolizes an important step forward for TMK and the government of Mongolia, confirming the growth of the coal seam methane extraction industry in the country. It underscores the government's recognition that natural gas is a viable alternative to coal, which will help improve Mongolia's long-term energy security and diversify its energy sources,” said TMK Energy CEO Dougal Ferguson.
Ferguson added that natural gas could become a cleaner, more efficient, and faster source of energy that complements both existing and future generation, as well as reduce dependence on electricity imports.
Methane from coal seams is a type of natural gas that consists of 95-97 percent pure methane. It is held in the coal matrix under water pressure and requires water extraction to release the methane. This type of gas is considered unconventional.
Methane from coal seams is regarded as a cleaner fuel since it generates about half as much carbon dioxide compared to coal-fired electricity and burns more efficiently than other fossil fuels.
Conventional natural gas, unlike methane, is extracted from porous sandstone reservoirs and is held under pressure by impermeable layers, allowing it to rise to the surface without pumping.
Last week, TMK set a new gas production record in its pilot project, which is part of the Gurvantes coal seam development program.
On January 21, the company achieved a new daily record, extracting 674 cubic meters of gas, equivalent to over 23,800 standard cubic feet per day. A new monthly record was also set at 18,370 cubic meters.
The reserves of methane from coal seams in Mongolia may receive an additional boost due to two factors: the country is striving to improve its energy independence and is located near northern gas pipelines in China, which could open access to significant volumes of gas in future projects.
