The company said that it will begin the feasibility study with an investigation into the potential for a project utilising gas from L&M’s 173PJ (3P) coal seam gas (CSG) asset near Ohai, in Southland.

HW Richardson Group is one of New Zealand’s largest trucking companies, and distributes fuel through its subsidiary Allied Petroleum.

HW Richardson Group Managing Director Scott O’Donnell said “We believe that there are a number of natural synergies between our companies, and we intend to investigate these synergies further. The most immediate opportunity before us is the potential to develop LME’s Ohai Coal Seam Gas into LNG for use as an environmentally friendly transport fuel.”

L&M Energy Managing Director of CSG Kent Anson said that the company was very pleased to be moving forward with proving up its CSG reserves in Southland.