Welcome to the Erdenes Methane website.

Erdenes Methane is a 100% owned subsidiary of 100% state-owned Erdenes Mongol, which operates under the management of the Cabinet Secretariat.

We have been conducting research on coal bed methane (CBM) in coal basins and identifying methane reserves, preparing feasibility studies, estimating commercial viability, preparing extraction plans, and trying to raise funds. We also have to determine how best to use the gas.

Our primary goal is to produce CBM and use it to provide an environmentally friendly and ecologically clean source of energy. As state-funded prospecting of methane was found problematic, we have restricted ourselves to estimating CBM reserves and studies. Since I took up my present position as Executive Director, I have been focusing on attracting foreign investment for prospecting. Last December, the Board of Directors of Erdenes Mongol decided to implement the CBM project with foreign investment.

We are in close touch with some investors in Australia, a country with extensive experience in the methane sector. They very well know the rewards that might come, so could feel inclined to take the risks and join in the prospecting phase. We are also talking with the Russian company, Gazprom Promgaz.

We have detected that each coal seam of Tavantolgoi deposit contains methane gas. “Jade methane” company is fully covering investment for unearthing coal seam gas in Tavantolgoi deposit. Erdenes Methane plans to drill five holes this year while geologists from Australia studied geological formation of the deposit and defined sites for extraction. The joint company has drilled 500-900 meter deep holes in eight sites. A total of 5207.7 m holes have been drilled and full test for methane gas has been made in samples of 618 pieces of coal.

Erdenes Methane is looking for methane not only in the Tavan Tolgoi coal fields, but also in other deposits, including in the western region.

All our CBM resources are inferred, as no drilling or any other exploration work has ever been done to identify the location and the exact amount of reserves. Even when such resources are identified, it is not clear whether it will be economically sensible and technologically feasible to go for extraction.

At the moment, the priority is resolving the problems of financing. We need a significant amount of money at this stage, though we cannot say how much we would need to come up with enough results from exploration to know about the viability of proceeding further. The feasibility study for a project will be developed as we progress with prospecting and drilling. Any potential investor would insist on a clear picture of the possibilities of the project.

Assuming we are successful in obtaining finance after sufficient exploration and completion of the feasibility study, we shall begin developing the project. We shall have to construct methane gas pipeline, gas plants and a liquefied gas transportation system. If this really comes to pass, Ulaanbaatar city will be smoke free.

Amar Dorjpalam
Chief Executive Officer