Elixir books contingent CSG resources for Mongolian gas-fired power project

Elixir Energy Ltd, Adelaide, has booked independent contingent resources at its Nomgon coal seam gas discovery in southern Mongolia which will underpin a new gas-fired power generation project in the country.

The resources estimate, undertaken by ERC Equipoise Pte Ltd, has been confined to the initial selected gas supply area in the western sector of the Nomgon subbasin for the power project.

Elixir said the 2C recoverable gas resource is 24 bcf, which is more than sufficient to provide gas for the expected life of the plant.

The company has executed a memorandum of understanding with the Mongolian Ministry of Energy which provides a framework under which the parties will cooperate to investigate and then support a gas-fired power project in the south Gobi region.

Elixir has also entered into an agreement with Australian-based Clarke Energy, a coal seam gas – power engineering specialist subsidiary of US private entity Kohler Company, to conduct a feasibility study for the power project.

Elixir is aiming to establish an initial Mongolian plant of about ten Mw capacity.

The company, which has a 100% interest in the Nomgon IX production sharing contract, is planning to run production testing at the Nomgon discovery this year to establish stabilised water and potentially gas flow rates. This will be followed by a longer term pilot programme beginning in 2022.

The data obtained will be used to finalise a development plan.

Elixir anticipates a 13-sq km area will be developed for the power plant over a multi-decade life. The mid-case number of wells is likely to be at least 36 and up to 107 depending on the style and type of development.

If successful, this will be Mongolia’s first gas-fired power station.

Source: Oil & Gas Journal