Company explores methane gas sites

Privately owned energy explorer L&M Coal Seam said methane gas sourced from Otago could be a viable alternative to liquid petroleum gas (lpg) and compressed natural gas (cng).

The company told the Otago Daily Times (ODT) it planned to set up five pilot production sites in Otago and Southland, and hopes to produce commercial quantities of methane from gas trapped within coal seams.

The ODT said the company had spent $3 million on an exploration programme over the past four years, and further development and testing could push the total to over $10 million.

L&M Coal Seam has 10 exploration permits covering 1896sq km in the Waikato, Central Otago, Kaitangata and Southland. The company website said assessments put the energy potential from its permit areas at 240-300 petajoules.

L&M managing director Greg Logan told the ODT that five holes would be drilled at its pilot plants in Otago and Southland to determine methane flows.

The gas would be stored in tanks and transported by road to Dunedin, Queenstown and Invercargill.

- NZPA