METHANE GAS MAY BECOME A MISSED OPPORTUNITY FOR MONGOLIANS
Industry experts note that the demand for methane gas in the global market is growing significantly at a time when the consumption of rare earth elements is sharply increasing. However, the question of whether Mongolians can become leaders in this area depends on several factors.
A few years ago, Mongolia’s consulting engineer Ts. Tumurbaatar said that, “today, the exploration and extraction of unconventional methane gas begins. Identification and extraction of methane gas reserves in coal seams will make it possible to stop using raw coal and start using environmentally-friendly fuel. Methane gas will be used as fuel for power plants, small furnaces, steel mills, heavy duty vehicles, public transportation, and households, and will help reduce air pollution.
Difference between conventional and unconventional methane gas, there is an urgent need to further improve the legal framework and amend the Law on Petroleum and related regulations, as well as the Production Sharing Agreement (PSA).
The PSA is the most suitable agreement and carries no risk for our country. The principle is that the investor bears 100% of the risk and the profits are shared with the government. However, methane gas exploration and production companies believe that this agreement should be changed.
Contracts for coal bed methane exploration were signed with the joint stock company Erdenes Tavantolgoi at the Tavantolgoi coal mine and with Mongol Gold Company (MAK) at the Nariinsukhait coal deposit.
Let us think optimistically. The mining company explains that if the conditions are ready for methane use, the first step is to assess natural gas reserves,develop a feasibility study, and then build an industrial complex, including gas pipelines and pumping stations. They warned that this would require not only a lot of money, but also the training of qualified personnel.
Starting in 2019, three companies listed on the Australian Stock Exchange have begun methane gas exploration and drilling experimental wells in Mongolia.
It will also be used in the infrastructure sector.” His interview was widely published in the media. But the situation remains unchanged.
I would not be wrong in saying that reducing air pollution and achieving energy independence is the main desire of Mongolians. So, we need to start exploring, extracting and utilizing our natural methane gas reserves. Since Mongolia is highly dependent on energy and oil, we need to diversify our resources as soon as possible.
We have a better understanding of coalbed methane now than in the past. Unconventional oil is natural bitumen, shale, oil sand, and coalbed methane gas.
On the other hand, experts in the field explain that along with understanding the“Experimental mining” means mining operations conducted to determine economic viability. Experimental mining determines whether the existing volume of gas is economically viable, the potential production capacity, and the expected life of the field.
To date, four companies have signed PSA agreements for six fields. Since 2018, these companies have been continuously exploring for methane gas. They also said that the results of the experimental mining will be available this year and that they have positive expectations.
The time has come to consolidate all these resources and confirm Mongolia’s methane gas reserves internationally. In addition, since Mongolia has abundant coal reserves, there is the prospect of economically significant coalbed methane gas accumulation.
At international conferences, scientists and researchers remind us that choosing to use methane gas is inevitable, because global climate change and warming have serious negative consequences for humanity. Moreover, they point out that by 2030 the world will not use raw coal at all.
If we cannot produce and use our methane gas, we need to take advantage of the natural gas flowing from Russia to China via Mongolia. During last year’s SCO high-level meeting, the leaders of Mongolia, Russia and China managed to reach
the first important agreement. But we must take the next step. It is time to look for natural gas and identify other solutions. The city administration agrees that using natural gas, especially liquefied natural gas, to eliminate smog in the capital is the right thing to do. The use of natural gas in the energy sector has helped major cities eliminate air pollution
Countries around the world widely use methane gas in energy, heating, and chemical industries and benefit from it.. Based on our abundant coal resources, Mongolia can extract methane gas from coal seams.
One of our country’s new sources of energy can, therefore, be methane gas. Researchers warn that “if we don’t explore our methane gas reserves, we will be wasting our valuable resources”. There is also a fear that the Mongolians, through their carelessness, may miss out on this opportunity to use methane.
Major cities around the world are demonstrating that gas can be used in the energy sector to ensure that people live in a healthy and safe environment. The Mongolian Constitution also states that people should live in a healthy and safe environment. However, Ulaanbaatar’s smoke violates the basic rights of citizens, and people suffer grave consequences from air pollution. A key solution to this problem could be methane gas.
By joining the Kyoto Protocol to reduce greenhouse gas emissions, Mongolia has made certain commitments. Therefore, the time has come to contribute to reducing greenhouse gasses and developing green energy, just like other developed countries. It is necessary to intensify methane gas exploration now as time will not wait for us.