Stephen Robertson took on the position of Queensland Minister for Natural Resources, Mines and Energy following Premier Anna Bligh’s reshuffle of Cabinet earlier this year.
Mr Robertson says “I have twice before held the portfolio spanning natural resource management and mining business, so I am very well acquainted with the scale and diversity of issues.”?
Developing and supporting the LNG industry is an extremely important part of his portfolio. He says that the Queensland Government is working to develop a policy framework that aims to provide a stable environment for the LNG proponents to develop their investments.
“Exploration and development are the lifeblood of Queensland’s energy industry and the Bligh Government is committed to supporting industry with a comprehensive and evolving policy structure that stimulates exploration and development, creating jobs,”? says Mr Robertson.
As an example of this commitment, he points to the granting of tenures required for part of BG Group/QGC’s coal seam gas (CSG) developments in the Surat Basin as creating approximately 450 jobs from construction to operation.
BG/QGC is undergoing exploration expansion at its CSG fields in order to support its Queensland Curtis LNG Project, which will require a 380 km pipeline running from the company’s CSG fields to an LNG facility located on Curtis Island, Gladstone.
The Curtis LNG project is one of many CSG to LNG developments proposed for the state.
Mr Robertson sees Queensland’s emerging LNG industry as providing significant opportunities for economic growth.
“Modelling indicates that an industry exporting 28 million tonnes per annum of LNG could create 18,000 jobs in construction and gas field and plant operations, increase gross state product by over $3 billion and provide more than $950 million annually in extra royalty revenue.
Gas-powered policy
Referring to initiatives such as the Queensland Gas Scheme and investment in production and gas-fired electricity generation, Mr Robertson attributes the amount of activity surrounding CSG to LNG projects in the state largely to “almost a decade of government policy”?. The Queensland Gas Scheme mandates that electricity retailers source at least 13 per cent of their electricity from gas-fired power generation. This has not only meant an increase in gas production, but also an increase in demand for infrastructure to transport the gas to market.
“The gas scheme has facilitated the development of the CSG industry,”? says Mr Robertson.
“Over the next decade, it is expected that the role of gas will grow in the state’s energy mix, particularly as the Carbon Pollution Reduction Scheme (CPRS) is introduced and becomes a key driver for investment in gas-fired generation.”?
The Queensland Government intends to transition the Queensland Gas Scheme into the CPRS once it is confident that the CPRS provides sufficient incentive for investment in natural gas.
“Should there be further delays in the implementation of the CPRS, the Queensland Government has the authority to increase the target under the Queensland Gas Scheme to 18 per cent,”? he says.
“Gas is expected to play a crucial role under the CPRS…Gas represents an ideal transition fuel as it can effectively reduce the emissions footprint of electricity generation while still allowing for the required levels of reliability.”?
Gas generating Queensland growth
Mr Robertson is excited about the future of the natural gas and pipeline industries in Queensland, saying that the Government will support the industries’ further development.
“Ultimately we want to create a more vibrant investment environment in Queensland,”? explains Mr Robertson.
He says that Queensland is Australia’s fastest growing, most decentralised and most energy-intensive state. Over the next ten years, Queensland is expected to experience the highest annual energy consumption and peak demand growth rates Australia-wide.
“The emerging LNG industry will dramatically stimulate CSG production in Queensland. Not only will there be massive volumes of gas available for LNG production, but there is also likely to be significant spillover gas available for the domestic market. Production of gas for LNG will necessitate the production of new gas pipelines to service the industry, and the role of gas in electricity generation will continue to grow.”?