Jun 21, 2013

Southern Mongolia: Coalfields Attract Energy Companies

Southern Mongolia’s large coal reserves have enticed energy companies to invest, but the question of exploitation of the indigenous community remains.

Below is an article published by Vanguard

Carbon Energy has identified three areas within the Haoqin Coalfield in Inner Mongolia that are potentially suitable for its keyseam underground coal gasification technology.
Haoqin Coalfield is owned by Chinese Top 500 enterprise Zhengzhou Coal Industry Group, which the company is the exclusive UCG technology provider for.

The sites were identified following a preliminary two month study that examined geological, hydrogeological, drilling and geotechnical data, reports and plans.

These areas appear to contain coal with suitable quality, thickness and structure and within a suitable groundwater regime for keyseam UCG operations.

Sufficient resources are also present to support a 1,000 megawatt power station or a synthetic natural gas plant producing 50 petajoules of gas per annum for over 30 years.

Carbon has also picked an area in the southern section of the UCG1 area within Haoqin Coalfield Block II that it considers to be best suited to conduct a Process Characterisation Panel (PCP).

A PCP is required at each potential UCG site to confirm the modelled process variables prior to the design and construction of the commercial UCG facility.

Zhengzhou is preparing to undertake site specific characterisation drilling and analysis at the preferred PCP site.

Carbon’s technical team will be travelling to Inner Mongolia to meet with Zhengzhou Group’s project team to commence the project. Initial works will include the development of a project plan and agreement on project timings, scope of work and design implementation.

As Zhengzhou’s exclusive UCG Partner, the company stands to earn $10 million in technology license fees, upon achieving milestones, additional revenue from technology service fees and ongoing royalty payments.