Asia
Jade Gas Holdings Executes Nonbinding Collaboration Agreement with Lead Contractor for Mongolia Coal Bed Methane Project First Phase, Shares Fall 7%
Jade Gas Holdings (ASX:JGH) executed a nonbinding collaboration agreement with potential lead contractor PT Beijing Energy Linking to contemplate funding the development of the first phase of the Tavan Tolgoi coal bed methane project in Mongolia, according to a Monday Australian bourse filing.The first phase capital expenditure is estimated at $762.5 million, and binding agreements are targeted for execution by the end of the September quarter. The first phase includes 175 wells, currentlycontemplated across the Red Lake development area.Under the agreement, the PT Beijing Energy consortium agreed to make up to 10 drilling rigs available for short-term deployment, with initial mobilization targeted to begin between February 2027 and March 2027. The consortium could include one of PetroChina and Hunan Geology & Mining Technology, or both, as subcontractors.Jade Gas will be responsible for any permitting and regulatory approvals, grid line capacity, land access, drill site preparations, internal roads, water storage, and drainage systems.The agreement also includes the potential funding and development of an around $150 million scalable liquefied natural gas liquefaction facility.Its shares fell 7% in recent trading on Monday.
ASX:JGH
