The advantages of new gas supplies are revealed in Queensland’s Budget, with $7 billion in future royalties predicted from the industry to help fund the equivalent of establishing a new public hospital every year, according to the Australian Petroleum Production & Exploration Association (APPEA).
In a statement, APPEA said that while southern states miss out on the significant economic advantages of onshore gas development, Queensland anticipates a record $2.33 billion in petroleum royalties this financial year, which will help sustain the state’s $12 billion surplus.
According to budget papers, earnings from the gas industry would amount to $7.011 billion in the five years to 2026-27, up from $5.9 billion last year. Annual gas earnings of $1.4 billion will enable Queensland to fund the equivalent of a new public hospital or 140 new schools.
APPEA noted that the Budget recognises the resources industry as a “traditional driver of investment, economic growth and job.”
APPEA Chief Executive Samantha McCulloch recalled that Queensland didn’t have a separate line item in its budget for petroleum royalties a decade ago.
“This is one of the benefits of new gas supply and the direct return to the Queensland public from the hundreds of billions of dollars of industry investment and stable policy and regulatory settings from the State Government over more than a decade. This year’s Budget, for example, further supports gas exploration to unlock new energy in the Bowen and Galilee basins,” McCulloch said.
“East coast energy system pressures have shown how Queensland gas keeps the lights on as New South Wales and Victoria outsource their energy security with bans and uncertain regulatory environments chilling investment in new supply. Meanwhile, Queensland’s long-running support of onshore gas development sees it continue to enjoy substantial economic benefits, with the supply chain supporting around 30,000 jobs, millions of dollars being invested in regional communities and billions flowing to the government,” McCulloch added.
McCulloch stated that the new $85 million investment to modernise CS Energy‘s Brigalow Hydrogen-ready Gas Peaking Plant demonstrates how gas will supplement renewables in power generation under the Queensland Energy and Jobs Plan.
“Queensland understands how to extract the economic benefits from gas while charting a path to net zero as gas backs up renewables, replaces coal, supports industry and manufacturing and kickstarts low-carbon hydrogen production,” she said.
