TMK in final commissioning phase of Mongolia CBM pilot

ASX-listed TMK Energy on July 13 announced that the pilot well programme at Gurvantes XXXV coalbed methane (CBM) project in the South Gobi basin of Mongolia is in its final commissioning phase, and once completed, the extended production testing will begin.

TMK has successfully installed the downhole pumps and drive heads. Additionally, all surface facilities and associated infrastructure have been constructed. The next step involves a short commissioning phase for the three pilot production wells before the extended production testing can start, which is expected to happen within the next week.

The gas produced from the wells will be measured through a metering skid connected to the wellhead at the surface. Initially, the gas will be flared, but there are plans to potentially connect it to reciprocating engines to generate electricity, as outlined in a cooperation and offtake agreement with MAK announced in March this year.

The programme is primarily funded by ASX-listed Talon Energy which last year exercised an option to take a 33% interest in the production sharing agreement over the Gurvantes XXXV project and entered into a joint venture with TMK, which holds the balance of 67% interest and is the operator of the project.