Royalties in the Australian oil and gas sector set to double

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

Revenue from the sector is set to more than double over the forward estimates to AUS$5.9 billion from the AUS$2.7 billion forecast in 2021 – the equivalent of providing healthcare for more than 180 000 Australians or building 20 new primary schools every year.

Matthew Paull, Queensland director of the Australian Petroleum Production & Exploration Association (APPEA), said the state budget showed the state was continuing to benefit from its investment and long running support of the oil and gas industry.

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

“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.

“Recent east coast energy system pressures have highlighted the importance of gas in a cleaner energy future and particularly the Queensland industry, providing supply to southern states, replacing coal as a lower emitting fuel and stabilising renewables when the sun does not shine, and the wind does not blow.

“Our industry can provide this energy security to Australians because the Queensland Government has done the sensible thing and diversified its energy supplies and supported growth in natural gas and LNG for more than a decade.

“This shows there are very real benefits from a strong export industry, which has also underpinned extra domestic supply.”

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

He added: “It is good to see the state continuing to think about the future and investing further. 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.”

For more information visit www.appea.com.au