KIMBERLY-CLARK Australia Millicent Mill manager Scott Whicker has welcomed Beach Energy’s announcement it will step up its gas activities near Penola.
“The exploration for additional conventional gas resources in the South East region is also promising in its potential to provide long-term security of local supply,” Mr Whicker said.
“Energy is a significant cost for our operations despite the high efficiencies at which we operate all of our electrical generation and thermal systems.
“We are certainly hoping locally-sourced natural gas will provide a significant reduction in our energy costs.
“The State Government’s Plan for Accelerating Exploration (PACE) grant program which helped fund the exploration has been critical in making our goal of lower energy costs a potential reality.”
The Millicent Mill had used gas from Katnook for over a decade until 2005, when its supplies became exhausted.
The plant has since used gas from the SEAGAS pipeline into Victoria.
While Beach Energy previously announced its looming Dombey-1 conventional drilling well 20km north-west of Penola, it will now also move ahead with the Haselgrove-4 project.
Haselgrove-4 will be located 7km south of Penola in close proximity to the existing network of Haselgrove wells.
Beach Energy will start community consultation early next month with sessions to be held in Penola and Millicent on August 1 and 2.
Meanwhile, the region’s peak environmental action group has vowed to continue to protest against the roll-out of new conventional gas exploration projects in the region.
Limestone Coast Protection Alliance committee member Cate Cooper vowed the group would again stage protests against the drilling programs.
She warned conventional drilling remained a risk to the environment given exploration techniques drilled through the region’s aquifers.
Ms Cooper said the alliance received significant community support for its protest campaign during the Haselgrove-3 drilling project.
