Solid Energy Keen on Extending Coal Seam Gas Activities

New Zealand’s Solid Energy plans to extend its coal seam gas explorations in the countryside west of Huntly with the aim of setting up a commercially viable operation.

The state owned company, via Coal Bed Methane Ltd, seeks to extend its exploration permit by four years after tasting success in a 2008 pilot scheme.

At the time, Solid Energy estimated coal seam gas could eventually meet up to 10 per cent of New Zealand's gas demand.

The initial pilot was a joint venture between Solid Energy and Resource Development Technologies, which has since been bought out of the venture.

The gas from the Huntly wells is reportedly very pure, containing 98 per cent energy-rich methane.