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

CoolCo reveals more details on GAIL LNG carrier charter deal

LNG carrier operator CoolCo has revealed more details regarding its recent 14-year charter deal with India’s largest gas utility...

Kinder Morgan secures more time for Gulf LNG export project

US energy company Kinder Morgan and its partners have secured more time from the US FERC to add liquefaction...

Golden Pass LNG contractor Zachry files for bankruptcy

US construction company Zachry said on Tuesday it has filed for bankruptcy, initiating a structured exit from the Golden...

More News Like This

Zeebrugge LNG expansion work progresses

Lithuania’s MT Group is moving forward with work on the expansion of the Fluxys-operated LNG import terminal in Belgium's...

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...