L&M Energy is working with Invercargill-based trucking firm HW Richardson Group on the possibility of using coal seam gas from Southland in a small scale liquefied natural gas (LNG) project.L&M managing director for petroleum John Bay said his com
L&M Energy is working with Invercargill-based trucking firm HW Richardson Group on the possibility of using coal seam gas from Southland in a small scale liquefied natural gas (LNG) project.
L&M managing director for petroleum John Bay said his company was looking at all options for using its asset of 173 petajoules (PJ) of 3P -- proven, probable plus possible -- coal seam gas near Ohai in western Southland.
The key was how much gas was available, how fast it would come out and what was economic, Mr Bay said.
The company thought four to five petajoules of gas a year was potentially available, which would convert to about 320,000 litres a day of diesel equivalent. More work needed to be done to confirm the productive capacity of the fields.
The attraction of the Richardson group, which had more than 740 trucks, was not just the potential for it to convert its vehicles to running on LNG.
It was also involved in concrete and construction, which used big equipment, and through its subsidiary Allied Petroleum serviced more than 60 service stations and fuel stops in the North and South Islands.
"So they may be a transporter of fuel, rather than a consumer," Mr Bay said.
China was the leader in small scale LNG projects, with small projects also in places such as Victoria and Tasmania in Australia.
A statement from L&M and Richardson said LNG-powered vehicles were becoming commonplace in other parts of the world, including Australia.
LNG was recognised as providing significantly reduced greenhouse gas emissions when compared to traditional fuels such as diesel and petrol, as well as providing price insulation from volatile global oil price fluctuations.
