TMK Energy is steadily securing a prominent position in Mongolia’s emerging gas sector, as production continues to climb at its Gurvantes XXXV coal seam gas project. With output increasing, the company is preparing for an active 2026 campaign focused on new pilot wells, gas-fired power generation, and deeper engagement with a country that is increasingly desperate for a reliable energy supply.
Production update
The latest operations update revealed that average daily gas production rose to 663 cubic metres per day in April, a 13 per cent increase from February and the project’s second-highest monthly rate, trailing only March’s peak. This was achieved despite the necessary curtailment of well LF-07 in late March. The reservoir management plan continues to deliver steadily rising gas output and broadly stable water rates, with flagship well LF-07 rebuilding production after a deliberate curtailment designed to protect long-term well performance.
Water and operational performance
Water output remained near 490 barrels per day during April, indicating continued reservoir depressurisation without destabilising the system. Apart from a mechanical pump failure at LF-03 and intermittent regional power outages, the company reported no pump blockages or workovers across the field, helping maintain strong pump uptime and higher water extraction rates.
Project overview
TMK’s flagship Gurvantes XXXV project spans 8,400 square kilometres in Mongolia’s South Gobi Basin, less than 20 kilometres from the Chinese border and near established northern Chinese gas infrastructure. Thick coal seams extend across 150 kilometres of strike, giving the project genuine basin-scale potential as Mongolia pushes to stabilise chronic energy shortages and reduce dependence on imported electricity.
Technical review and optimisation
Alongside its operational update, TMK completed its third independent technical peer review in April, bringing together current and former management with international coal seam gas specialists to assess development plans. The review examined the upcoming drilling campaign, reservoir management strategy, and a suite of new optimisation initiatives now slated for implementation. While endorsing TMK’s current reservoir management strategy, the review panel also identified fresh optimisation techniques to spread LF-07’s standout performance across the company’s broader well network and future pilot production holes.
Future plans
TMK expects to begin drilling new pilot production wells in the third quarter of the year, while fast-tracking its gas utilisation strategy, now elevated to priority status. The initiative aims to reduce flaring, secure uninterrupted on-site power, supply excess electricity to local users, and demonstrate proof of concept to regulators and stakeholders. This follows last month’s memorandum of understanding with Mongolian regulator MRPAM, allowing pilot gas to be used for on-site power generation.
TMK Energy chief executive officer Dougal Ferguson said: “Our immediate focus is the upcoming pilot well drilling program, as well as the important need to have the beneficial use of gas initiative in place as soon as possible, to not only reduce the flaring of gas, but also to lock in our own permanent power supply for the Pilot Project.”
Strategic positioning
The company says recent discussions with Mongolian government agencies and private consortia have reinforced the growing role natural gas could play in stabilising the country’s increasingly energy-short power system. While talks remain preliminary, TMK says the Gurvantes XXXV project is attracting growing political and commercial attention as a potential domestic energy solution, with gas likely to play an important role in Mongolia’s energy mix.
Across Asia, tightening power markets and volatile fuel supply chains are sharpening the focus on cleaner-burning domestic gas resources. With LF-07 still building momentum beneath Mongolia’s South Gobi sands, TMK is increasingly shifting from an exploration hopeful to an emerging player in the country’s future energy mix.
