TMK throws doors open to partners for Mongolian gas project

TMK Energy has seized the spotlight at the prestigious SEAPEX Conference in Manila, flinging open its data room and formally kicking off a farm-out process for its Gurvantes XXXV coal seam gas project in Mongolia.

Run by the South East Asia Petroleum Exploration Society, the annual event draws a who’s who of geoscientists, engineers, regulators and dealmakers for a mix of technical deep dives, showcases and high-level networking across the Asia-Pacific energy scene.

This year’s turnout is tipped to be particularly strong, with fresh urgency around securing locally sourced gas supplies as global markets grapple with Middle East disruptions.

And TMK appears to have arrived with plenty of firepower. Strong pilot well results, confirmed gas desorption and a sizeable, certified resource have combined to push its Mongolian play firmly towards commercial rollout.

‘I truly believe we are on the cusp of delivering significant value.’

With seven wells now producing, a 1.2 trillion cubic feet (Tcf) contingent gas resource and a further 5.3 Tcf of upside, the company is courting strategic partners to fast-track development over the next 24 months, while shoring up a stable gas supply.

The project sits in Mongolia’s South Gobi Basin under a production-sharing contract and spans 8400 square kilometres, giving the company full exposure to a vast, underdeveloped gas province.

TMK says Gurvantes is shaping up as one of the country’s most advanced onshore gas opportunities. Its certified 722 billion cubic feet (Bcf) 2C gas resource sits in the shallowest, lowest-cost portion of the development zone and will form the backbone of any future ramp-up.

Operationally, the pilot program has unlocked valuable subsurface insights, with seven wells now online delivering consistent pressure and flow data. Its standout LF-07 well surged to more than 31,800 standard cubic feet per day (scfd) in early March, comfortably surpassing previous highs near 25,000 scfd, continuing a pattern of month-on-month production increases.

Observed pressure communication between wells confirms connectivity across the reservoir, while consistent steady declines in reservoir pressure have demonstrated the system is responding to dewatering. The project appears to be edging closer to optimal desorption conditions – a critical milestone for unlocking meaningful gas rates.

TMK says reservoir modelling has now integrated several years of production and pressure data, delivering more detailed forecasts and strengthening confidence in scalability. The plan revolves around modular production units designed to be rolled out step by step, steadily pulling gas from defined areas, allowing the project to scale up easily as infrastructure grows and demand builds.

Ongoing improvements in gas flow rates and operational efficiency, alongside reduced costs and improved well management, have further strengthened project economics.

A upcoming work program will focus on drilling three additional pilot wells and expanding data collection to refine reservoir understanding and optimise performance. This work is expected to support a structured field development plan, with modelling indicating production potential of up to 200 million standard cubic feet per day over the life of the project.

TMK Energy Limited chief executive officer Dougal Ferguson said: “I truly believe we are on the cusp of delivering significant value to our shareholders and crystallising the enormous potential of our flagship asset.”

The door is now open to partners. TMK has kicked off discussions across the full value chain, spanning upstream drilling partnerships, midstream infrastructure players and downstream offtake groups.

Designed to align capital with key milestones, the company says it is promoting a farm-out structure expected to give incoming players phased exposure to what it sees as compelling economics backed by low geological risk.

With gas desorption achieved and commercialisation fast approaching, TMK’s approach to potential funding partners appears particularly well timed.

Mongolia’s broader energy landscape sets a compelling stage. The nation leans heavily on coal-fired power and imported fuels, exposing it to supply risks and mounting environmental pressures. That dynamic is fuelling a shift toward cleaner, homegrown solutions, with gas gaining traction as policymakers ramp up support to cut pollution and steady the country’s energy mix.

The recent spike in global gas prices due to Middle East disruptions has also shone a particular light on Gurvantes as one of a small number of projects that genuinely have the potential to rapidly deliver meaningful amounts of gas into Asia.

In response, TMK has engaged with government stakeholders, including signing a memorandum of understanding with the Ministry of Energy to assess gas-to-power opportunities. The project already has a ready-made customer base on its doorstep, with major mining operations nearby that use huge amounts of energy.

With the farm-out process now in play, TMK is offering prospective partners a front-row seat to a fast-emerging energy story – a chance to step in as the project shifts from a discovered resource rich with promise into a de-risked development with genuine scale and staying power.

Looking ahead, the key catalysts are likely to be continued improvements in gas output, the launch of the next drilling campaign and locking in a funding partner or partners to accelerate development timelines.

If all three catalysts land in relatively short order, progress could quickly build towards a final investment decision, leaving TMK on the cusp of establishing Mongolia’s first meaningful domestic gas supply chain.

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