Exploration of methane gas commences based on TavanTolgoi coal deposit
"Erdenes Methane LLC”, a subsidiary of “Erdenes Mongol LLC” established a contract of methane gas investment with Australia's "Jade Methane" company to explore and discover reserves of methane gas.
“Erdenes Methane LLC”, a subsidiary of “Erdenes Mongol LLC”established a contract of methane gas investment with Australia's "Jade Methane" company to explore and discover reserves of methane gas based on TavanTolgoi coal deposit in southeastern Mongolia. The agreement was signed yesterday by D.Amar, Executive Director of "Erdenes Methane" LLC and Jose Burke, Executive Director of "Jade Methane" LLC of Australia. The investors highlighted that the project on coal seam gas has animportant role to reduce air pollution and negative impacts on the environment. It’s also expected to be a big contribution to the economy in Mongolia with coal reserves of 80 percent of its territory. “Mongolia is close to the market of key customers in methane gas. It is seen as a major competitive advantage since the natural gas reserves are relatively close to 600 km from Ulaanbaatar. China receives natural gas from other countries through its northern port. Instead of that, if China imports natural gas and methane gas from Mongolia, there is an opportunity that its core customers will receive the gases at the lowest cost as possible,” said theCEO of Jade Methane, Joseph Burke. The Board of Directors of Erdenes Mongol LLC made a decision to raise funds from the international market by exchanging exploration and feasibility studies for the methane gas project by foreign investors last year. According to this, Erdenes Methane announced an open tender and Australia's Jade Methane was chosen as the foreign investor to cooperate on the project.