ASX-listed Jade Gas Holdings has announced approval of its maiden reserves by the Mongolian Minerals Reserves Council (MRC) for its Tavan Tolgoi Coal Bed Methane (TTCBM) project, representing the first approval of coal seam gas reserves in Mongolia.

The approval of the company’s net recoverable gas of 165 m³ in the proved and probable category is a landmark achievement for the company and the country, following Jade’s extensive exploration and conceptual development planning work at the TTCBM project, in the South Gobi region.

Having successfully concluded an appraisal programme and receiving approval of the appraisal report in April, Jade lodged its maiden reserve booking submission with the MRC, which is a significant regulatory requirement that seeks validation and registration of the company’s first gas reserve.

Notably, the reserve booking covers only a small portion of Jade’s project area – about 4.2 km² of the total 60 km² Red Lake Field area.

The MRC’s registration of Jade’s initial gassy coal seams intervals recognises the TTCBM project’s reserves and establishes a key basis for subsequent permitting and development activities.

Next, Jade will submit its plan for development of operations for the TTCBM project, which will serve as the formal development blueprint defining scope, infrastructure design, production forecasts and environmental management commitments.

Once this plan is approved, Jade can apply for an exploitation licence, enabling the transition from appraisal to commercial field development and commercial gas production at scale. Jade will undertake environmental- and social-impact assessments, as well as other regulatory submissions required, to support the exploration licence application in future.

Phase 1 of Jade’s development plan envisions a drilling campaign of up to 175 wells – as a moderate-scale, modular development focused on supplying liquefied natural gas to the local transport network, with optional supply to mining operations and industrial power users.

The broader field development further contemplates about 800 wells and a potential project life of more than 30 years.

Jade is also advancing commercial engagements in parallel with regulatory processes, including domestic and international parties such as energy offtakers and infrastructure providers, thereby exploring a range of participation structures in the TTCBM project.

These initiatives align with Jade’s strategy to establish a scalable gas development capable of delivering cleaner, domestically sourced energy to Mongolian industry and households over the long term, reducing dependence on unreliable imports and contributing to national decarbonisation objectives.