Ohаi is a town in the Southland Region of New Zealand's South Island. It is located 65 kilometres northwest of Invercargill and 25 kilometres west of Winton. The 2001 New Zealand Census of Population and Dwellings gave its population as 399, a decline of 22.2% or 114 people since the 1996 census.[1][2]
Ohai is notable for the production of coal. In order to provide convenient transport of the coal to markets beyond the local area, a privately owned railway extension from the New Zealand Railways Department's Wairio Branch was opened by the Ohai Railway Board in January 1925. In 1934, this line was further extended beyond Ohai to Birchwood, but the terminus had reverted to Ohai by the time the line was incorporated into the national rail network in 1990. The line is now known as the Ohai Industrial Line and is one of the very few survivors of a formerly extensive rural branch line network. The Ohai Railway Board is now involved in the restoration of steam locomotives including members of the P and V classes and a railway museum has been established.
Ohai is the terminus of New Zealand State Highway 96, which runs from Mataura via Hedgehope and Winton. A primary school once served the town, but it closed in 2003 and students now attend school in nearby Nightcaps. A golf course, a bowls club, a police station, and a recreational reserve are located in the town.
Major petroleum company L&M Energy is successfully completing the final stages of their well drilling program on the outskirts of this town for coal seam gas production. If the Ohai coal seam gas project is able to convert its existing 3P gas reserves into 2P reserves for development then it could be the biggest onshore gas project in New Zealand, creating growth and opportunities in this town.
Coal is to be mined again on a small scale, commencing early 2012.
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