Mongolia : Methane Gas Supply Chain Development Master Plan
The government requested ADB to support the study on the development of the country's first nationwide methane gas supply infrastructure development strategy. The knowledge and support technical assistance (TA) will support the country's policy (i) to mitigate air pollution in Mongolia, and (ii) to ensure the reliable, cleaner, and secured primary energy supply, by developing a methane gas supply infrastructure development strategy paper to switch primary energy resource from coal to cleaner methane gas.
East Asia Department
Request for information
|Project Name||Methane Gas Supply Chain Development Master Plan|
|Country / Economy||Mongolia
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
OP6: Strengthening governance and institutional capacity
|Sector / Subsector||
Energy / Energy sector development and institutional reform - Oil and gas transmission and distribution
|Gender||No gender elements|
|Description||The government requested ADB to support the study on the development of the country's first nationwide methane gas supply infrastructure development strategy. The knowledge and support technical assistance (TA) will support the country's policy (i) to mitigate air pollution in Mongolia, and (ii) to ensure the reliable, cleaner, and secured primary energy supply, by developing a methane gas supply infrastructure development strategy paper to switch primary energy resource from coal to cleaner methane gas.|
|Project Rationale and Linkage to Country/Regional Strategy||
Air pollution has been one of the most serious issues in Mongolia, posing serious public health risks. According to WHO, annual mean of particulate matter of less than 2.5 micrometers in diameter (PM2.5), one of air pollution level indicators, in the capital Ulaanbaatar city is 6-10 times higher than safe criteria of the WHO air quality guidelines. Ulaanbaatar, the country's capital with around half of the nation's population also suffer from the severe air pollution, especially in winter. The main causes are burning solid fuel, mainly raw coal and waste, in Ger areas (around 220,000 households) for heat and cooking purpose (80%). The Government of Mongolia approved the National Program for Reducing Air and Environmental Pollution in March 2017, setting the target to reduce air and environmental pollution by at least 50% by 2025.
Energy sector responds to the issue by switching the use of primary energy resource from coal to cleaner methane gas. Implementation Plan for the Government Action Plan 2016-2020 aims to develop a master plan for the country's first nationwide gas supply system, utilizing unconventional primary energy resources like domestic methane gas from coal reserve as well as possible import gas in future. Mid-term National Program 2019-2023 for the implementation of the State Policy on Energy sets one of its goals as 'Ensuring reliable energy supply and security, aiming to assist the activities.
Air quality improved.
Reliable, and cleaner energy supply secured.
|Description of Outcome||
Readiness for investments in methane gas supply infrastructure increased.
|Progress Toward Outcome||On track. An international consulting firm (HJI Group Corporation) was contracted to provide solutions for the strategy to develop a methane gas supply chain for Mongolia's heating and power demand. The consultant has submitted the draft final report in English and Mongolian to MOE and ADB in April and May 2022, respectively and conducted the final workshop in August 2022.|
|Description of Project Outputs||
1. Methane gas supply chain development strategy paper developed
2. Pre-feasibility study report of prioritized methane gas infrastructure project prepared.
3. Capacity development provided.
|Status of Implementation Progress (Outputs, Activities, and Issues)||An international consulting firm (HJI Group Corporation) was contracted to provide solutions for the strategy to develop a methane gas supply chain for Mongolia's heating and power demand. The firm delivered the inception report in 2020, interim report with the relevant workshop in June 2021 and strategy paper with the relevant workshop in November 2021. The consultant submitted the draft final report (DFR) in English and Mongolian to MOE and ADB in April and May 2022 respectively and the relevant final workshop was conducted in August 2022 to disseminate the DFR findings, including the pre-feasibility study result on the prioritized investment list, and to provide capacity building program to the government counterpart.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Keep close communication with the executing agency (Ministry of Energy).|
|During Project Implementation||The executing agency will set up a working committee comprising the Ministry of Energy, the Ministry of Mining and Heavy Industry, and the Mineral Resources and Petroleum Authority to coordinate TA implementation.|
|Responsible ADB Officer||Sakai, Atsumasa|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||EASI|
Ministry of Energy
|Concept Clearance||29 May 2019|
|Fact Finding||23 Oct 2019 to 25 Oct 2019|
|Approval||26 Dec 2019|
|Last Review Mission||-|
|Last PDS Update||22 Sep 2022|
|Approval||Signing Date||Effectivity Date||Closing|
|26 Dec 2019||25 Jan 2020||25 Jan 2020||31 Jan 2022||31 Jan 2023||28 Apr 2023|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||1,000,000.00||0.00||0.00||0.00||0.00||1,000,000.00||06 May 2023||820,757.00|
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|Title||Document Type||Document Date|
|Methane Gas Supply Chain Development Master Plan: Final Report||Consultants' Reports||Nov 2022|
|Methane Gas Supply Chain Development Master Plan: Technical Assistance Report||Technical Assistance Reports||Dec 2019|
Safeguard Documents See also: Safeguards
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None currently available.
Evaluation Documents See also: Independent Evaluation
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|Tender Title||Type||Status||Posting Date||Deadline|
|Feasibility Study on Methane Gas Supply Chain Development Master Plan||Firm - Consulting||Closed|
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Policy and Advisory||Technical Assistance 9938||08 Jul 2020||HJI GROUP CORPORATION(UNITED STATES) in association with RICHWELL ENGINEERING LLC(MONGOLIA) | 3200 Park Center Drive, Suite 1180 Costa Mesa, CA 92626 USA||Ministry of Energy||843,000.00||—|
None currently available.