Photo by: Bloomberg
PERTH (miningweekly.com) – The Queensland government on Wednesday launched a gas action plan aimed at growing the state’s gas industry while boosting employment from the wellhead through to gas-fired manufacturing and export.
State Development and Natural Resources and Mines Minister Anthony Lynham announced the development of the Queensland Gas Supply and Demand Action Plan, which would be completed early next year.
“This action plan will be an overarching strategy to maximise exploration, drive development, keep gas costs down and get maximum economic and job benefit for Queensland,” Lynham said.
“The eastern Australian gas market is undergoing a period of rapid growth and structural transformation following the commencement of gas exports to the Asia-Pacific market. The government needs to take the lead on the gas-related issues that will affect our households, our businesses, our industries and our jobs growth.”
Lynham said that the gas plan would aim to stimulate increased gas supply, optimise the economic recovery of gas resources, and leverage and build on the commonwealth government’s various gas and energy initiatives.
A key part of the plan would be looking at future opportunities.
“Global demand for Queensland gas, led by Asia, is increasing. By 2018, Queensland is expected to be the fourth-largest LNG [liquefied natural gas] exporter globally and by the end of the decade Australia has the potential to be the world’s leading LNG exporter," Lynham said.
“On the domestic front, natural gas demand on the Australian east coast is forecast to grow at a staggering 16.5% each year. The action plan will examine the full spectrum of gas demand, business and employment opportunities in Queensland beyond what’s already happening or in the pipeline with LNG production at Gladstone,” he said.
The Australian Petroleum Production and Exploration Association (Appea) has welcomed the plan, saying that it encouraged new exploration and development for the domestic and export markets.
Appea COO for Eastern Australia Paul Fennelly said the plan would be a winner for Queensland if it encouraged the ongoing growth of an industry that was already delivering major benefits for the state.
“With commitment and determination we can achieve the right policy settings to ensure the natural gas industry continues to power the Queensland economy for decades to come.”
Fennelly added that it was essential that the plan focus on policies that would substantially enhance the industry’s global competitiveness and encourage investment in new exploration and production.
“That means continuing to reject unworkable intervention policies, such as domestic gas reservation, that will deter investment and only create adverse economic outcomes in the longer term.”
He added that the investment of more than A$70-billion worth of new gas infrastructure in Queensland since 2010 would help Australia become the world’s leading LNG exporter in the next few years.
“With domestic and global demand for gas forecast to increase, Queensland can attract further investment and growth in the industry if we get the policy settings right,” he said.
Queensland’s petroleum and gas industry supported almost 145 000 jobs directly and indirectly last year and has production worth A$1.9-billion. The industry is forecast to generate A$411-million in royalties for Queensland in 2015/16.