Lakes Oil letter of intent with food giant

LAKES Oil has signed a letter of intent to supply Victorian gas to Simplot Australia.

The letter of intent relates to one of two 10-year foundation agreements that Lakes Oil is signing with Victorian industry.

Simplot Australia is a leading Australian food manufacturer, producing brands such as Leggo’s, Edgell, Birds Eye, John West and Chiko.

The company hopes to reduce energy used by 25 per cent per tonne of production during a 10 year period and associated carbon reduction per tonne.

Lakes Oil chairman Robert Annells said Simplot had chosen Lakes Oil gas because of its Victorian locations, commercial benefits and low Co2 (less than one per cent), compared with other sources of gas in Australia which contained up to 25 per cent Co2.

Simplots’ operations are spread across Australia. In Victoria, it has manufacturing sites located in Echuca, Pakenham and Flemington, with its head office located in Mentone.

The supply is subject to the execution of a formal supply agreement, final commercialisation of the Wombat field and the lifting of the state government’s moratorium on drilling for onshore gas in Victoria.

“Lakes (Oil) is of the opinion that when community consultation has been carried out across the state, it will be realised that our developments are in no way linked to coal bed methane,” Mr Annells said.

“This contract is at an attractive price, designed for Victorian gas to provide jobs in Victoria for Victorians.”

This story Administrator ready to work first appeared on Nanjing Night Net.

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