Jade Gas Holdings has signed a non-binding gas offtake memorandum of understanding (MoU) for potential gas sales to Mongolia’s largest LNG importer and gas distributor, UB Metan LLC (UBM).
Non-binding offtake MoU
Jade has signed a non-binding gas offtake MoU, dated 4 April 2022, with UB Metan LLC, Mongolia’s largest LNG distributor and an existing major shareholder of Jade. The partnership is driven by an alignment to support Mongolia’s desire for improving the country’s energy independence, energy mix, and meeting climate change commitments that will ultimately improve the health and well-being of its people.
The terms of the MoU include:
- UBM to have a non-exclusive option for gas supply from initial production from Jade’s TTCBM Project.
- The parties working toward negotiating a binding gas sales agreement that will contemplate commercial terms on a long form offtake agreement (expected following the outcome of the 2023 pilot production programme at TTCBM).
The MoU sets the foundation for UBM to become an integrated partner, which could include the potential provision of necessary infrastructure to support on-site compression of natural gas (CNG) and transportation to Ulaanbaatar, nearby towns and mining sites.
Jade CEO, Chris Jamieson, said: “This MOU sets a framework and visible pathway as we plan for commercial options for Jade’s TTCBM Project. As Mongolia’s largest gas distributor and major shareholder in Jade, a partnership with UB Metan LLC is logical and sensible in the context that we are both fully aligned on our ambition to deliver an independent cleaner energy supply.
“The TTCBM Project continues to progress well following the recent discovery of thick gas bearing coal seams. The team continues to move ahead with the final stages of our current six well and technical programs which sets us on track to book an initial contingent resource.”
UB Metan LLC CEO, Basjargal Bold, added: “We are very pleased to have signed the MoU with Jade, which formalises our desire to take future gas production from the TTCBM Project. We believe the Jade team has the capability needed to deliver Mongolia’s first commercial gas production from the highly sought after TTCBM Project. As Mongolia’s largest importer and distributor of gas, a key driver for the future prosperity of our business at UB Metan LLC is a secure and reliable domestic source of natural gas that is located close to future customers. The TTCBM Project ticks all the boxes in this regard and we look forward to supporting Jade to ensure this project reaches its full potential.”
Read the article online at: https://www.worldcoal.com/cbm/05042022/jade-signs-mou-with-ub-metan-llc/
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