JOHANNESBURG (miningweekly.com) – The Australian Petroleum Production and Exploration Association (Appea) on Monday moved to highlight the contribution of the Queensland gas industry to the state’s economy, ahead of Treasurer Curtis Pitt’s state Budget this week.
The industry organisation stressed that the gas industry had contributed A$10.6-billion to Queensland’s gross regional product in the previous financial year, supporting 3 500 registered businesses across the state.
Appea Queensland director Chris Lamont said that, while severe reductions in commodity prices would impact on Tuesday’s Budget, the industry’s A$70-billion investment in liquefied natural gas would continue to deliver economic benefits over decades to come.
“This investment has a lifespan of at least 30 years, providing decades of employment, income for suppliers and businesses as well as tax revenue and royalties for Queensland and Australia,” Lamont said.
“Just like the agricultural sector the gas industry is familiar with the swings and roundabouts of supply and demand commodity cycles.
“These are long-term projects with long-term contracts and while the current global oil price drop has forced many companies to revise their business strategies, Queensland’s future remains bright.”
Pitt has indicated that mining royalties would be A$2.7-billion less than what the state government had forecast six months ago and that state taxes would be A$350-million lower, owing to the mining downturn.