Jade Gas has lodged a plan for development of operations (PDO) for its Tavan Tolgoi Coal Bed Methane (TTCBM) project with Mongolia’s regulator and agreed a proposed 502km² production licence area.
The plan for the coal bed methane project has been submitted to the Mongolian Minerals Reserve Council for approval. It sets out a framework for drilling, dewatering, gas production and long-term management of field operations.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Jade Gas said approval of the PDO would be a regulatory milestone towards securing the long-term production rights required to commercially develop the project.
In parallel, the company agreed the proposed production licence area with the Mongolian regulator. The 502km² area is roughly 80% of the existing 629km² exploration area.
The proposed area covers the Red Lake development, which contains Jade Gas’ maiden coal bed methane reserves and is the initial focus of development activities.
It also covers the Vista and Brownhill areas, where Jade Gas has identified potential for further resource development.
The granting of the production licence would move TTCBM from an exploration and appraisal asset to long-term commercial development, the company said. It would provide Jade Gas with the tenure and rights required to develop, produce and monetise its gas resources.
Jade Gas said the certification of its maiden reserves, the PDO submission and the agreement on the licence area demonstrate progress on regulatory and in-country requirements for the TTCBM project.
The developments were not prerequisites or conditions precedent to the company’s non-binding collaboration agreement, announced last month, progressing to a binding form.
Jade Gas executive director Joe Burke said: “The submission of the PDO, following the recent certification of our maiden CBM [coal bed methane] reserves, represents another major step in transitioning TTCBM from exploration and appraisal towards long-term commercial development.”
TTCBM is located in the production sharing agreement area of the Tavantolgoi XXXIII unconventional gas basin.
Jade Gas operates and manages the project through Methane Gas Resource, a joint venture company with the Mongolian Government.
The Australian Securities Exchange-listed company said it transitioned from explorer to developer after the formal approval of Mongolia’s first-ever natural gas reserves in June 2026.
In July, Jade Gas signed a non-binding collaboration agreement with Beijing Energy Linking and its consortium partners to secure an estimated A$1.1bn ($771m) in funding for phase one development of the Red Lake project.
