TMK Energy (ASX:TMK) Advances Gurvantes Commercialisation with Power Project Deal

Aditi Sarkar

18 May 2026 04:59 PM AEST

TMK Energy (ASX:TMK) Advances Gurvantes Commercialisation with Power Project Deal

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Highlights

TMK has signed an MoU with Dashvaanjil Group for its first gas-to-power generation project in Mongolia.
The initial plant is sized at up to 1MW, with a dual-fuel design using Pilot Well gas and Dashvaanjil LPG.
Three-stage framework covers engineering and design, procurement and construction, and commissioning.
First power generation is targeted for the end of Q3 2026.
Excess power may be sold to local industrial users, supporting commercialisation of Gurvantes XXXV.

TMK Energy Limited (ASX:TMK) has announced that it has signed a Memorandum of Understanding (MoU) with Dashvaanjil Group LLC, which the company describes as Mongolia’s largest LPG Import and distribution company, to advance its first gas-to-power generation project at the Gurvantes XXXV Pilot Well Project in Mongolia. The 18 May 2026 ASX announcement marks a further step in TMK’s strategy to commercialise produced gas through practical, scalable utilisation initiatives.

For investors tracking TMK ASX announcements, the agreement is positioned by the company as a milestone that not only secures an uninterrupted power Supply to TMK’s Pilot Well operations but also opens a pathway to broader gas sales to local energy users. This article summarises the verified details of the announcement and the wider context for shareholders.

Latest TMK ASX Announcement

Under the initial MoU, TMK and Dashvaanjil will work toward developing a power plant of up to 1MW near the Pilot Well Project, fuelled by gas TMK is currently producing and supplemented by Dashvaanjil’s LPG products in a dual-fuel solution. The power unit is designed to be modular and scalable to allow for excess gas to be utilised in the future as TMK ramps up production.

The MoU framework comprises three stages: engineering and design, which is to commence immediately; procurement and construction, subject to a commercial framework and feasibility study; and commissioning and power generation, targeting the end of Q3 2026. Engineering and design work is to be completed by the end of Q2 2026, with Dashvaanjil undertaking Downstream engineering studies at its own cost and TMK undertaking Upstream field work to commingle the produced gas.

Management Commentary

TMK Energy CEO Mr Dougal Ferguson said the agreement “cements our relationship with a highly experienced local energy partner and is a major step forward in advancing our pathway for future commercial gas sales.” Mr Ferguson noted Dashvaanjil’s strong safety culture, operational capability, infrastructure footprint and technical expertise to deliver the project, and stated that maintaining a long-term, reliable power supply is key to allowing TMK to continue to increase gas production and expand operations at the Pilot Well Project.

Company Background

TMK Energy Limited (ASX: TMK) is an Australian-listed energy company focused on the development of its Gurvantes XXXV coal seam gas project in Mongolia. The company has offices in Perth, Western Australia and Ulaanbaatar, Mongolia. The Gurvantes XXXV Project is being progressed through a Pilot Well program designed to demonstrate commercial gas production and underpin future commercialisation pathways.

Dashvaanjil Group LLC, established in 1992, is described as Mongolia’s pioneer LPG company, operating across all 21 provinces and employing around 600 people. The company imports and distributes LPG nationwide and provides services including autogas, heating systems, engineering, delivery and gas equipment retail.

Key Numbers and Project Details

The headline numbers include an initial power plant capacity of up to 1MW. TMK has indicated that the Power Project will be designed to be modular and scalable, allowing for additional capacity as production grows. Excess power is expected to be sold to local customers, most likely local industrial users such as coal Mining operations, with the local grid noted as being 100% reliant on Chinese electricity imports.

Why Investors Are Watching TMK

Market Participants are watching TMK for evidence that the Pilot Well Project can move from technical demonstration to a sustainable, cash-generating operation. The Dashvaanjil Partnership is positioned as the next step in that journey, with both parties to undertake their own work at their own risk and cost during the engineering and design phase. Investors may watch for the move into the commercial framework and feasibility stage, which will set out detailed commercial terms.

Sector Outlook

Globally, the role of Natural Gas in providing reliable, dispatchable power continues to be debated against the backdrop of energy security, electrification and decarbonisation. In Mongolia specifically, the reliance of the local grid on imported Chinese electricity provides a particular impetus to develop domestic gas-fuelled power. Junior ASX-listed energy explorers such as TMK can offer leveraged exposure to emerging gas resources, but typically carry higher technical and execution risk than diversified majors.

Opportunities and Growth Drivers

Potential growth drivers include successful design and construction of the initial 1MW plant, expansion of capacity as gas production grows, sales of excess power to local industrial customers, and validation of TMK’s broader commercialisation pathway for Gurvantes XXXV. The dual-fuel design and modular approach may help manage early-stage gas supply variability.

Risks and Uncertainties

Key risks include the technical and operational risks of constructing and commissioning a power plant in a frontier energy market, dependence on the success of the Pilot Well gas production ramp-up, permitting and grid access risks, Commodity and electricity pricing risks, foreign exchange and country-specific risks associated with operating in Mongolia, and the conditional nature of the MoU itself — with procurement and construction subject to a commercial framework and feasibility study.

What Could Happen Next

TMK has flagged completion of engineering and design by the end of Q2 2026, with construction, commissioning and first power generation targeted for the end of Q3 2026. Investors may watch for further updates on these milestones, alongside the move to a commercial framework agreement and any subsequent commercial gas sales agreements arising from the broader Gurvantes XXXV commercialisation strategy.

Conclusion

TMK’s Mongolia gas-to-power MoU with Dashvaanjil represents a meaningful step toward early commercialisation of the Gurvantes XXXV Project. Investors are encouraged to read the full ASX release and monitor progress through the engineering, design, and construction milestones in 2026

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