Archived News
In August 2021 Finfeed changed from a website that covered ASX listed news to a website
that covered a select range of ASX
listed small cap Biotech stocks that we are personally
invested in: find out more.
The old Finfeed website, and all of the old articles are kept here for record keeping purposes.
VISIT NEW SITEEXR to develop Small Scale LNG plant, its first gas offtake project
2 minute read
In its first offtake project, Elixir Energy Limited (ASX:EXR) has partnered with one of Mongolia’s largest fuel retailing firms, MT Group to develop the country’s first Small Scale LNG (SSLNG) plant supplied from local coal bed methane (CBM).
The company recently executed a non-binding Memorandum of Understanding (MoU) with MT Group that sets out the initial framework for the partnership. Under the MoU, the parties will seek to develop a SSLNG plant to supply fuel to the South Gobi region's large coal trucking fleet.
The South Gobi’s large trucking fleet currently burns diesel, a fuel that could economically be replaced by cleaner and cheaper gas fuelled vehicles. The Tavan Tolgoi mine, for instance, which is located inside Elixir’s PSC area, trucks 15 million tonnes of coal to China each year, utilising thousands of trucks.

SSLNG plants are now commonplace in China, just to the South of Mongolia, where there are over six million gas fired vehicles on the road.
Earlier this year, Elixir announced Mongolia’s first ever coal bed methane (CBM), or coal seam gas (CSG) discovery at its 100% owned Nomgon IX CBM PSC in the country’s South Gobi region. Delineation and further exploration is ongoing across the 30,000 km2 landholding.
Given Elixir’s milestone event of making Mongolia’s first gas discovery, the company state that it is now timely to pursue the investigation of this first offtake option.
Initial modelling indicates that a SSLNG in this location should be highly profitable. Possible funding sources could include the various international financing institutions (IFIs) that are present in the country and with whom Elixir has an ongoing relationship.
MT Group was established in 1994 and its core operations comprise fuel retailing facilities across the country – including on the road connecting Tavan Tolgoi to China. It currently sources liquid products for these from the likes of Russia’s Rosneft and Gazpromneft. The company has also expanded its operations into other areas such as telecommunications and resource exploration.
Elixir’s Managing Director, Mr Neil Young, said: “Supplying gas to a SSLNG plant in the South Gobi region is a great initial offtake project for our company to investigate. There is a clear existing market in terms of the very large local coal trucking fleet which could operate on clean gas rather than diesel. We are very pleased to be working with a company of MT Group’s calibre in pursuing this project.”
The map below shows the Tavan Tolgoi coal mine and the Oyu Tolgoi copper mine — both of which are located with Elixir’s PSC area — along with the roads into China.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain.