ArdNews

🔥 First Large-Scale Coal Bed Methane Developments Take Shape in Mongolia 🇲🇳

June 02, 2026

In partnership with

Australia-listed Jade Gas Holdings is accelerating the exploration and development of coal bed methane (CBM) resources in Mongolia’s South Gobi region through a diversified portfolio that includes the Tavan Tolgoi CBM (TTCBM) Project, Baruun Naran, Shivee Gobi, and Eastern Gobi prospects.

📍 TTCBM Remains the Company’s Flagship Project

Located within the Tavan Tolgoi coal basin, the TTCBM Project continues to be Jade Gas’ primary asset. Drilling activities in the Red Lake area have identified extensive gas-bearing coal seams, with methane concentrations reaching as high as 98% in certain intervals.

The company has also announced a Gross Unrisked 2C Contingent Resource estimate of 246 Bcf, making it one of the most advanced coal bed methane resource assessments currently reported in Mongolia.

⛏️ Strategic Position Within the Tavan Tolgoi Coal Basin

The project is situated within one of Mongolia’s largest coal-bearing regions. Geological studies have confirmed favorable structural conditions for methane accumulation and production, supported by extensive drilling programs and structural mapping.

🌏 Broad Exploration Portfolio

In addition to TTCBM, Jade Gas holds exploration rights over several highly prospective areas:

  • ▪️ Shivee Gobi – covering approximately 8,317 km² in the South Gobi region and considered highly prospective for future CBM development.

  • ▪️ Eastern Gobi – spanning approximately 9,691 km² and encompassing several coal-bearing formations with significant methane potential.

  • ▪️ Baruun Naran – located adjacent to the TTCBM Project and forming part of the broader Tavan Tolgoi coal basin, where drilling has already intersected substantial gas-bearing coal seams.

📈 A New Opportunity for Mongolia’s Energy Sector

Coal bed methane is increasingly viewed as a strategic energy resource capable of diversifying Mongolia’s energy mix, reducing emissions associated with conventional coal consumption, and establishing a domestic natural gas supply.

If successfully developed, these projects could position Mongolia as an emerging producer of unconventional natural gas alongside its globally recognized coal and copper industries.

🗣️ Why It Matters

As Mongolia seeks to transform its mining-dependent economy into a more diversified and sustainable growth model, the coal bed methane projects in the South Gobi region have the potential to become a significant new driver of economic growth. In particular, the TTCBM Project remains one of the most closely watched unconventional energy developments currently underway in Mongolia.

Picture 1: Regional Tectonic Setting

Picture 2: TTCBM Project Area

Picture 3: Structural Geology Map

Picture 4: Eastern Gobi

Picture 5: Shivee Gobi

Picture 6: Baruun Naran

Mongolia’s economy, stock market, politics, and mining news delivered first on ArdNews Brief in 5 minutes.

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