TMK Energy’s Mongolian coal seam gas play is starting to hum, with the company clocking another monthly rise in production.
For the fifth month in a row, gas output climbed at the company’s 100 per cent owned Gurvantes XXXV coal seam gas project, with December flows recording the strongest showing yet and carrying strong momentum into 2026.
The monthly year-end numbers tell a tidy story. Daily gas production reached a record of about 570 cubic metres, or more than 20,100 standard cubic feet per day, marking a 13 per cent lift on November’s average.
Notably, TMK says the well has produced at more than 20,000 cubic feet per day since Christmas Day, with water production holding steady at roughly 511 barrels per day, suggesting a strong level of consistency.
In coal seam gas, the combination of rising gas and stable water is precisely what engineers would want to see as reservoir pressure is steadily drawn down.
Looking at the bigger picture, progress across the wider project area appears even more striking. With all wells continuing to perform at greater than 99 per cent uptime, gas production is now more than four times higher than it was back in August, underscoring how far the pilot program has come in just a few months.
The continued month-on-month increase in gas rates is a very positive indicator that we are continuing to reduce the reservoir pressure and are approaching the all-important critical desorption pressure. Commercialisation of our enormous coal seam gas resource will be the focus for 2026 as the Pilot Well Project continues to advance towards what we fully expect to be materially higher gas production rates in the months ahead.
TMK Energy chief executive officer Dougal Ferguson
The critical desorption pressure threshold is a big deal in coal seam gas. Once it is crossed, production rates can accelerate materially, transforming a technical pilot into something with serious commercial legs.
With the odds of that outcome shortening by the month, TMK says it’s already looking beyond simply proving the wells can flow. Detailed planning and engineering works are underway to configure the pilot wells so the gas can be combined and potentially used to generate power on-site. Any excess electricity could then be sold into the local grid, presenting an early revenue angle for the company.
The potential for saleable gas is hugely important for the region. Mongolia is keen to strengthen its domestic energy security and a scalable, locally supplied gas project ticks plenty of boxes. For TMK, the production boost has also created optionality as it works through the next phase of development and engages with regulators and potential offtake pathways.
Looking ahead, the company has flagged the first commercial gas from its vast coal seam gas resource as a key focus for 2026. If the current trajectory continues and gas rates lift again as critical desorption is reached, the timeline to revenue may start to sharpen.
For now, TMK has done precisely what the market tends to reward in early-stage energy play by delivering consistent operational progress, reducing uncertainty step by step and letting the data and flows do the talking.
Delivering five consecutive months of rising gas production is not something that happens by accident, suggesting Gurvantes is beginning to find its stride.

Published Date:2026-01-05