Australia's Jade Gas pens gas sales deal in Mongolia
ASX-listed Jade Gas has signed a memorandum of understanding (MoU) to supply gas from its TTCBM project in Mongolia to power Xanadu Mines’ Kharmagtai copper-gold development, it said on December 22.
Xanadu is developing copper-gold porphyry deposits in the south of Mongolia, with its Kharmagtai project located approximately 80 km to the northeast of Jade’s TTCBM project. The operation is expected to have a 30-year mine life with up to 120 MW of power demand.
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Jade said the MoU aligns both parties shared ambition for improving Mongolia’s energy independence, energy mix, and meeting climate change commitments.
The parties will work toward negotiating commercial terms for a binding gas sales agreement which is expected after Jade’s 2023 TTCBM project pilot production programme.
“Jade has already established substantial gas field potential over a 45 km strike, and it is pleasing to see commercial customers in the region recognise the important role that Jade can play in providing a cleaner source of energy to deliver on ESG ambitions for sustainable operations,” Jade CEO Chris Jamieson said.