Rising Gas Rates at TMK Signal Critical Phase but Commercial Risks Remain
TMK Energy has achieved a fifth consecutive month of rising gas production at its Gurvantes XXXV Project in Mongolia, hitting a new daily record in December 2025. The company is now advancing plans to harness this gas for power generation, signalling a promising commercial phase ahead.
- Fifth consecutive month of increasing gas production at Gurvantes XXXV
- Record daily gas production of approximately 570m3 on 30 December 2025
- December average daily gas output rose 13% over November to ~526m3
- Water production steady at around 511 barrels per day
- Plans underway to comingle gas for onsite power generation and potential grid sales
Sustained Growth at Gurvantes XXXV
TMK Energy Limited (ASX, TMK) has marked a significant milestone with its Gurvantes XXXV Coal Seam Gas Project in Mongolia, reporting a fifth consecutive month of rising gas production. December 2025 saw the project achieve a new daily production record of approximately 570 cubic metres, surpassing 20,100 standard cubic feet per day for the first time. This steady upward trajectory highlights the operational momentum TMK has built since August 2025, with gas output now more than quadruple that of mid-year levels.
Operational Stability and Efficiency
The project’s water production remained stable at an average of 511 barrels per day throughout December, indicating consistent reservoir management alongside increasing gas extraction. All wells maintained uptime exceeding 99%, underscoring the reliability of the pilot well infrastructure. This operational consistency is critical as TMK advances towards commercialising what CEO Dougal Ferguson describes as an “enormous coal seam gas resource.”
Next Steps, Power Generation and Commercialisation
Looking ahead, TMK is progressing detailed engineering to comingle gas from its pilot wells. The plan is to utilise this gas to generate power for the site’s operations, with the potential to sell surplus electricity into the local Mongolian grid. This move could unlock additional revenue streams and enhance the project’s economic viability. Ferguson emphasised that the company is approaching the critical desorption pressure in the reservoir, a key technical milestone that typically precedes materially higher gas production rates.
Strategic Implications for 2026
With the pilot well project demonstrating sustained production growth and operational robustness, TMK’s focus in 2026 will be on scaling up gas output and advancing commercialisation efforts. The company’s ability to maintain this momentum will be closely watched by investors, especially as it moves from pilot phase towards full-scale development. The potential integration of power generation adds a strategic dimension that could differentiate TMK in the coal seam gas sector.
Bottom Line?
TMK’s steady production climb sets the stage for a pivotal year of commercialisation and power generation ambitions.
Questions in the middle?
- How soon can TMK begin selling excess power to the local grid?
- What are the expected capital requirements to scale gas production beyond pilot wells?
- How will approaching critical desorption pressure impact long-term reservoir performance?
