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Thursday, April 10, 2025

Mongolia’s Coal Pollution: A Lingering Health Problem That Needs Solutions: The Power of Siberia-2 Pipeline and Coal Seam Gas are Emerging as the Best Solutions


     It gets cold in Mongolia. The capital city, Ulaanbaatar, is one of the coldest capitals in the world. I had a roommate who moved to Mongolia in 2013. She would say that it was cold, so I pulled up Ulaanbaatar in my phone weather app and indeed it was often quite cold. Overnight temps of -20 F and even -40 F are not uncommon. I also noticed the moniker “smoke” applied like we might apply fog. However, the smoke comes from burning coal. The country is on the steppes where there are not many trees so along with coal being burned in power plants, people heat their homes and gers (yurts) with coal. The “smoke” from burning raw coal contains pollutants, including ground-level ozone, particulate pollution, carbon monoxide, and sulfur dioxide.












     Like LA and Salt Lake City, Ulaanbaatar is also subject to weather inversions or thermal inversions where a layer of cool air gets trapped below a layer of warm air, keeping pollutants near the ground. The ger district around the city has over 200,000 gers which mainly burn raw coal so 80% of the pollution comes from these homes. Air pollution is a serious public health problem in the city. There are high pneumonia rates and high rates of other respiratory infections among children. A 2019 NPR report notes that:

In late January 2018, Ulaanbaatar made international headlines when one government-installed sensor reported a PM2.5 concentration of 3,320 per cubic meter. That level was 133 times what the World Health Organization considers safe.”

     The city, which contains nearly half of the country’s population, banned the burning of raw coal in 2019. The government began promoting semicoke, a byproduct of coal that is more expensive but can burn up to twice as long with less pollution. Wealthier citizens can afford air filters.








     A 2024 report by Climatescope by Bloomberg New Energy Finance, noted that Mongolia should increase its renewable energy generation since they have good wind and solar availability. Some of the data are shown below. The country does hope to increase that share of total energy production from the current 10% to up to 30% of capacity by 2030 but that won’t be easy and may not happen. Of course, 30% capacity does not mean 30% renewables since they are intermittent sources. Renewables produce only about 8% of power generation. However, renewables growth has stalled for several reasons: coal use is subsidized so renewables subsidies can’t compete well, the cost of renewables is still too high, the power grid is aging and not in good shape, and the country is large with a small population which makes non-urban grid extensions prohibitively expensive. For home heating, coal is still much cheaper in 2025 than electric heating, especially for gers which are not well-insulated. Wealthy citizens often leave the capital for the winter if they are able. The city itself is heated mainly by district heating which is derived from coal heating water for steam heat. The gers are not tapped in.

     The solutions offered in the Bloomberg article: more renewables build-out, connecting with other power grids in Russia and China, and hydrogen, are not really feasible solutions. Renewables are costly and intermittent, the costs to run transmission lines to Russia and China are too high, and green hydrogen is even less cost-effective. These are not solutions. Exacerbating the problem is traffic in the city which is high and produces even more particulates from burning diesel fuel.










     Coal is also the source of the vast majority of Mongolian carbon emissions as shown below.







 

One Likely Solution is Looming on the Horizon: Natural Gas 

       The March 2025 article by AFP notes:

The city's deputy governor responsible for air pollution, Amartuvshin Amgalanbayar, promised change.”

“This year, 20,000 households will switch to gas, resulting in a 15 percent reduction in pollution,” he said.

He also noted that more people will be moved from the ger district into apartments.

     One looming solution is coal seam gas, also known as coalbed methane. Australian company TMK Energy is leading the way. As reported by Andrew Todd in the Sydney Morning Herald in December 2024:

Gas pioneer TMK Energy has taken a major step toward commercial gas production at its mammoth Gurvantes project in Mongolia, signing a binding memorandum of understanding (MoU) with German-backed power generation provider Jens Energie LLC to import a gas fired power plant from Germany in early 2025 at no cost to TMK.”

The agreement paves the way for TMK to become Mongolia’s first coal seam gas-to-power project, with electricity set to flow from TMK’s mammoth Gurvantes XXXV coal seam gas project to the local grid as soon as next year.”





     Currently, TMK has a six-well pilot production site, the Lucky Fox project, to feed natural gas to the plant. The coal seams in the area are very thick and should be able to provide large quantities of gas.

Located in the South Gobi desert, a region known for its mammoth coal deposits, the Gurvantes XXXV project holds a 1.2 trillion cubic feet (Tcf) contingent resource, with further upside potential from its 5.3Tcf prospective resource.”

That is quite a lot of gas and can sustain the country for years and allow it to transition away from coal. The project is close to Northern China markets, and they may be able to sell the gas to them as well. TMK now owns 100% of the Gurvantes project. The downside is that the coal seam gas is closer to Northern China than to Ulaanbaatar so it would need to be pipelined closer to the city in order to feed power plants and gas service in the city. However, I have not heard of any plans to build a pipeline to supply TMK's coal seam gas to Ulaanbaatar, about 700km (435 miles) to the north. 












     On April 7, 2025, TMK reported that their wells were approaching critical desorption pressure. A lowering of pressure allows gas desorbed onto the coal to be released as pressure is drawn down by dewatering. According to the Sydney Morning Herald:

TMK Energy’s chief executive officer Dougal Ferguson said: “The project continues to show encouraging signs with many of the pilot production wells delivering record monthly gas rates together with the first evidence of gas slugging from the coal seams, indicating we are progressing towards critical desorption pressure.”

     Another gas possibility for Mongolia is the Russian Power of Siberia -2 Pipeline proposal. Mongolia and China have both put the brakes on that project, temporarily. Mongolia has refused to fund the project for the next four years and China is not expecting new gas demand to be critical until around 2030 and is exploring other options such as Turkmenistan. However, the project is still likely to be built at some point. According to the Mongolian government as reported by Pravda Hungary:

The pipeline will run underground over a 960-kilometer stretch of the country, covering 6 regions and 22 municipalities. The environmental impact study of the project will be completed by the end of the third quarter of 2025. The state is already preparing the territories for construction.”

The scale of the project is impressive: 12,000 jobs will be created during the construction phase, and 1,000 during operation. In addition to transit to China, this will allow gasification of Darkhan, Ulaanbaatar, Choira and Sainshand, helping Mongolia reduce chronic air pollution.”

     While I am totally for sanctioning Russian gas, in this case, unsanctioned Russian gas could provide a great health and environmental benefit for Ulaanbaatar, especially as the pipeline route takes it very close to the city. I am a bit surprised that Russia has not built a pipeline just to supply Ulaanbaatar previously since their gas fields are reasonably close. I suspect economics was the reason.





     In any case, it looks like TMK’s project will be able to provide gas for Southern Mongolia as in the gas-to-power project with Jens and possibly Northern China which has significant gas infrastructure.

The power plant, expected to be operational by April 2025, will provide electricity to the local grid, marking a significant milestone in the country’s energy landscape. TMK has committed to supplying 5000 cubic metres of gas per day by June 2025, with Jens retaining the option to purchase up to 15,000 cubic metres daily for an initial two-year period, extendable for another two years.”

Another big question for the future is whether coal seam gas can be delivered to Ulaanbaatar. If the Power of Siberia -2 is built, there won’t be a need for it, although domestic gas would provide more local economic benefits than imported gas.

     In a possible future with abundant inexpensive natural gas, the city of Ulaanbaatar could heat the steam for district heating with natural gas instead of coal and expand its existing gas distribution network for home heating.

   

 

References:

 

Mongolia's children choke in toxic pollution. AFP. March 11, 2025. Mongolia's children choke in toxic pollution

Mongolia's Capital Banned Coal To Fix Its Pollution Problem. Will It Work? Emily Kwong. NPR. Morning Edition. July 30, 2019. Mongolia's Capital Banned Coal To Fix Its Pollution Problem. Will It Work? : NPR

Mongolia: CO2 Country Profile. Hannah Ritchie and Max Roser. Our World In Data. Mongolia: CO2 Country Profile - Our World in Data

Leaning on coal despite abundant renewable resources. Climatescope by Bloomberg NEF. 2024. Climatescope 2024 | Leaning on coal despite abundant renewable resources.

TMK fast-tracks Mongolia’s first coal seam gas-to-power generation. In partnership with BULLS N’ BEARS. Andrew Todd. Sydney Morning Herald. December 17, 2024. TMK fast-tracks Mongolia’s first coal seam gas-to-power generation

Gurvantes XXXV South Gobi Natural Gas Project. TMK Energy. GURVANTES XXXV SOUTH GOBI NATURAL GAS PROJECT – TMK Energy Limited (ASX:TMK)

China In Eurasia Briefing: The Power of Siberia-2 Pipeline Hits A Snag In Mongolia. Reid Standish. Radio Free Europe. August 21, 2024. China In Eurasia Briefing: The Power of Siberia-2 Pipeline Hits A Snag In Mongolia

One key country is holding up a natural-gas pipeline that would deepen ties between Russia and China. Filip De Mott, Business Insider. August 22, 2024. Mongolia Stalling Siberia-2 Natural Gas Pipeline Between Russia and China - Markets Insider

TMK turns jets on in Mongolia as it sets new gas production record. Craig Nolan. Sydney Moring Herald. April 7, 2025. TMK turns jets on in Mongolia as it sets new gas production record

TMK Energy: Transforming Mongolia’s energy with coal seam gas and strategic innovation. Kosec. January 3, 2025. TMK Energy | Leading Mongolia’s Transition to Clean Energy

The government of Mongolia reveals details of the future project for the transit of Russian gas to China/ Pravda Hungary. April 7, 2025. The government of Mongolia reveals details of the future project for the transit of Russian gas to China - Pravda Hungary

Putin makes renewed push for gas pipeline deal with China. Christy Lee. Voice of America. September 5, 2024. Putin makes renewed push for gas pipeline deal with China 

Transforming the Ulaanbaatar Heating Sector: Technology options for decarbonization. Anna Nilsson, Gustavo de Vivero, Pablo Lopez Legarreta, Thomas Day. New Climate. October 2022. Transforming the Ulaanbaatar Heating Sector

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