TMK Energy (ASX:TMK) has signed a cooperation and offtake agreement with Mongol, a large energy user in the Nariin Sukhait region, to purchase electricity generated from produced gas from the three well Pilot Production Well Program.
TMK will also provide access to heavy machinery and support for construction of Pilot Well Program infrastructure, and store and beneficially reuse excess water extracted from Pilot Production Wells.
The company says the agreement will provide TMK with the opportunity to generate and sell power to MAK Group and show the Gurvantes XXXV Project can provide a scalable domestic solution to meet the energy demand of the South Gobi region.
Shares in TMK Energy were 14% higher on the news.