Jade Gas Advances Mongolia Project with Regulatory Approval for Reserve Booking

Regulatory Approval Marks Key Milestone

Jade Gas Holdings Ltd (ASX:JGH) has received official approval from the Mongolian Mineral Resources and Petroleum Authority (MRPAM) for its appraisal report on the TTCBM Project, a decisive step that confirms the commercial viability of its coal bed methane discovery. This endorsement clears the way for Jade to move beyond exploration into reserve booking, a prerequisite for securing a long-term gas production licence under Mongolian regulations.

The approval follows the completion of an extensive appraisal program, which the company submitted for review in March 2026. It signals a transition from technical evaluation to preparatory steps for field development, reinforcing Jade’s ambition to establish Mongolia’s first significant domestic gas operation.

Reserve Booking and Project Scale

Reserve booking with the Mongolian Minerals Council (MRC) will officially recognise Jade’s maiden gas reserves, albeit initially covering a modest 4.2km² area and production from one of several known coal seams. This procedural step is critical, as acknowledged reserves underpin subsequent permitting and development activities, including the submission of the Plan for Development of Operations (PDO).

The PDO will outline a phased development blueprint, starting with up to 175 wells in Phase 1 aimed at supplying liquefied natural gas (LNG) to local transport and potentially mining and industrial power users. The full project contemplates approximately 800 wells and a lifespan exceeding three decades, indicating a substantial long-term commitment to Mongolia’s energy landscape.

Development Pathway and Commercial Momentum

Following PDO approval, Jade will lodge its exploitation licence application, marking the formal shift from appraisal to commercial production. The company is concurrently advancing environmental and social impact assessments required under Mongolian law, ensuring compliance with both regulatory and international project management standards.

Alongside regulatory progress, Jade is engaged in active commercial discussions with domestic and international partners, energy buyers, and infrastructure providers, aiming to secure participation and investment for the TTCBM Project. This aligns with prior capital raises, including a A$1.8 million placement earlier this year to fund development initiatives, which positioned the company to accelerate commercialisation of the Red Lake gas field within the project area A$1.8 million placement.

Technical and Strategic Foundations

The appraisal phase has delivered a robust technical understanding of the project’s potential, including confirmation of multiple gassy coal seams and substantial contingent gas resources. This foundation supports the reserve booking process and enhances confidence among potential financiers and partners by demonstrating economic viability and alignment with Mongolia’s energy priorities.

Jade’s strategy targets reducing Mongolia’s reliance on imported fuels and coal-fired power by developing a cleaner, domestically sourced gas supply. The project’s potential environmental and health benefits are significant, supporting Mongolia’s broader energy transition goals.

Earlier in the year, Jade completed its appraisal program, setting the stage for the regulatory approvals now underway and reinforcing the company’s development trajectory appraisal program successfully concluded.