L&M Energy Limited (LME) has entered into a landmark agreement to sell electricity output from its Ohai Coal Seam Gas Pilot Project to the Rio Tinto Alcan-owned New Zealand Aluminum Smelters Limited. The smelter, situated less than 80km away from Ohai, is New Zealand’s biggest single electricity user and expects to consume 5,500 GWh of electricity in 2011.
L&M Energy chairman, Geoff Loudon, said this was a vindication of the potential for the Company’s CSG project to generate strong economic returns and was looking forward to building a strong commercial relationship with NZAS.
L&M Energy is New Zealand based company which is focused on the development of commercial coal seam gas resources and discovering major conventional oil and gas resources. The Company holds equity interests in a number of exploration permits and is well funded for its current work programmes.