Oil and Gas News

Billions in oil and gas royalties – big boost for QLD economy

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Australia’s oil and gas industry will deliver almost $6 billion of royalties to the Queensland budget over the next five years, providing a direct benefit to the community from QLD’s liquified natural gas (LNG) export projects.

Revenue from the sector is set to more than double over the forward estimates to $5.6 billion from $2.7 billion forecast in 2021. This is the equivalent of providing healthcare for more than 150,00 Australians every year or building 60 new primary schools every year.

Australian Petroleum Production and Exploration Association (APPEA) QLD Director Matt Paull said that the current state budget proved the state was continuing to benefit from its investment and long-running support of the oil and gas industry.

“With oil and gas royalties surging and now set to deliver the QLD government over $1 billion a year going forward, Queenslanders will benefit from the state’s backing of the sector through vital new public services and infrastructure,” said Paull.

“As big as these numbers are, our economic contribution is far greater than just royalty figures – directly supporting over 30,000 jobs across Queensland’s gas industry supply chain, facilitating regional growth and delivering safe and reliable energy to homes and businesses.”

The Palaszczuk government has reaffirmed its commitment to reliable and affordable energy supply with the 2022-23 state budget delivering more than $2 billion in large-scale storage, renewable energy projects and generation and transmission investment.

Minister for Energy, Renewables and Hydrogen Mick de Brenni said the significant investment will power more good jobs in more industries across the state.

“This budget ensures Queensland will maintain its standing as a national energy leader for many years to come,” said de Brenni.

“It will also ensure Queenslanders maintain a stake in their energy future through their publicly owned energy corporations, with the retention of dividends supporting continued renewable energy, storage and strategic network investments for the benefit of all Queenslanders.

“We are continuing to invest in those corporations to ensure reliable, clean and affordable power for Queenslanders at a time it has never been more important to do so.”

Paull welcomed a new $68.5 million investment in the Queensland Resources Industry Development Plan (QRIDP).

“It is good to see the state continuing to think about the future and investing further,” he said.

“Our industry will be investing in the future, too, and will continue to work constructively with the Queensland government to support delivery of its emissions reductions goals.”

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