Jade Gas’s Second Well Success Raises Stakes for Mongolia’s Energy Transition
Jade Gas Holdings has confirmed continuous gas flow from its second production well at the TTCBM Project, reinforcing the project's commercial viability and advancing Mongolia’s largest coal seam gas development.
- Second production well at TTCBM Project achieves continuous gas flow
- Both wells transitioning to stable gas flaring with commercial rates expected soon
- Field development plan supported by ongoing production data
- Project poised to become Mongolia’s largest energy initiative
- Commercial off-take and funding discussions progressing
Successful Gas Flow Validates Project Potential
Jade Gas Holdings Ltd (ASX – JGH) has reached a significant milestone with its second production well at the Tavantolgoi XXXIII Coal Bed Methane (TTCBM) Project in Mongolia’s South Gobi region now delivering continuous gas flow. This achievement, announced on 20 August 2025, further de-risks the project and bolsters confidence in the field development plan underpinning what could become Mongolia’s largest energy project.
The second well, RL-Hz-002, was brought online in early June alongside the first well, RL-Hz-001. While the first well began continuous gas flow after 56 days of initial water production, the second well has now developed sufficient casing pressure to sustain gas flaring, marking a critical step towards commercial production.
Operational Progress and Field Development
Both wells are currently managed with controlled flaring to maintain optimal fluid levels and wellhead pressure, a standard practice in coal seam gas operations. The field operations team is carefully adjusting pump speeds and back pressure to maximize gas desorption from the coal seams, aiming to stabilize and increase flow rates over time.
These production tests are essential to finalizing the comprehensive Field Development Plan, which envisions a phased rollout of up to 175 wells across the Red Lake field. The data gathered will inform the design and scale of the project, which is expected to deliver strong payback metrics on a per well basis.
Strategic Importance and Commercial Outlook
Jade Gas is actively advancing commercial initiatives, including off-take agreements and funding discussions, to support the transition from pilot production to full-scale operations. The company’s strategy aligns with Mongolia’s broader energy transition goals, aiming to reduce reliance on imported fuels and coal-fired power by providing a cleaner, domestically sourced natural gas supply.
Non-Executive Director Dr. Ian Wang highlighted the technical team's confidence in the wells' performance, emphasizing the momentum building towards a significant gas operation. The project’s success promises not only to enhance Mongolia’s energy independence but also to deliver environmental and health benefits through cleaner fuel alternatives.
Looking Ahead
As Jade Gas continues to refine production parameters and secure commercial partnerships, the TTCBM Project stands at the cusp of transforming Mongolia’s energy landscape. The coming weeks will be critical in confirming commercial gas rates and advancing the project’s development phases.
Bottom Line?
Jade Gas’s steady progress with its second well sets the stage for Mongolia’s largest coal seam gas project to move from pilot to commercial scale.
Questions in the middle?
- When will commercial gas production rates from the second well be officially confirmed?
- What are the timelines and terms for securing off-take agreements and project funding?
- How will the project’s development impact Mongolia’s energy market and environmental goals?
