Australian company Jade has secured initial funding for its Coal Bed Methane (CBM) to Liquefied Natural Gas (LNG) project. This project is located in Mongolia. Chinese gas equipment manufacturer Langrun committed to provide up to $46 million in financing. The agreement currently stands as a non-binding letter of intent.
Project Overview
Jade is actively developing the CBM-to-LNG project. This initiative aims to convert coal bed methane into liquefied natural gas. The process makes gas easier to transport and store. This conversion represents a significant step for energy development in the region.
Funding Details
Langrun, a Chinese gas equipment manufacturer, will provide the financing. The company has committed up to $46 million for the project. This financial support marks a crucial milestone for Jade’s Mongolian operations. However, the current agreement is a non-binding letter of intent. This means both parties must finalize definitive agreements in the future.
Mongolian Context
The CBM-to-LNG project is situated in Mongolia. Mongolia possesses significant coal bed methane resources. Developing these resources could enhance the nation’s energy independence. Furthermore, it offers a cleaner energy alternative compared to traditional coal use. This project aligns with broader goals for sustainable development.
Future Steps
Securing this preliminary funding represents a key step for Jade. The company will now work towards converting the non-binding agreement into a definitive deal. Successful completion of this project could establish a new domestic energy supply chain. It may also attract further investment into Mongolia’s nascent CBM sector.
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