Elixir Energy plans small-scale LNG plant in Mongolia

Australia-based Elixir Energy said it has recently signed a deal with Mongolia’s MT Group to develop a small-scale LNG plant in the South Gobi region.

The LNG facility would supply fuel to the South Gobi’s large coal trucking fleet, according to Elixir Energy.

The memorandum signed by the duo is non-binding and sets out the initial framework for this partnership.

The coal bed methane producer has this year made Mongolia’s first gas discovery at its Nomgon IX PSC. The gas field is located in the region and this would be the company’s first offtake project.

Elixir says that, in the South of Mongolia in China, there are over six million gas-fired vehicles on the road.

The South Gobi hosts a large trucking fleet that currently burns diesel and which could be replaced by cleaner and cheaper gas-powered vehicles.

The Tavan Tolgoi mine, located inside Elixir’s PSC, trucks around 15 million tonnes of coal to China per year, utilizing thousands of trucks.

Elixir’s partner in the project , MT Group, is one of Mongolia’s largest fuel retailing firms. Its core operations comprise fuel retailing facilities across the country, including on the Tavan Tolgoi to China road.

The Mongolian company currently sources liquid products for these operations from Russia’s Rosneft and Gazpromneft.

Elixir says that initial modelling indicates that a small LNG plant in the South Gobi region should be “highly profitable”.

Possible funding sources for this project could include various international financing institutions present in Mongolia, it said.

- Advertisements -

Most Popular

Freeport LNG gets FERC approval to begin restart of Texas plant

Freeport LNG, the operator of the three-train 15 mtpa liquefaction plant in Texas, has secured approval from US FERC...

LNG tanker suffers rudder failure in Suez Canal

NYK's 2021-built LNG carrier Grace Emilia suffered a malfunction of its rudder in the Suez Canal on Wednesday, but...

Shell delivers first carbon-neutral LNG cargo under GIIGNL’s framework

LNG giant Shell has delivered the ‎first carbon-neutral LNG cargo to Taiwan’s CPC Corporation using GIIGNL's framework for emissions. Back...

More News Like This

MT Group wins more Zeebrugge LNG work from Fluxys

Lithuania’s MT Group has won more work from Belgium’s Fluxys regarding the expansion of the latter's LNG import terminal...

MT Group bags Zeebrugge LNG expansion gig

Lithuania's MT Group said it has secured a contract from Belgium's Fluxys to work on expanding the Zeebrugge LNG...