Media Centre
17/09/09New blueprint to guide Queensland's LNG future
The Bligh Government today unveiled a framework for a new liquefied natural gas (LNG) industry that could provide a significant boost to Queensland's economy.
"It is estimated that Queensland's burgeoning LNG industry could offer as many as 18,000 direct and indirect jobs - including over 4,300 in the Darling Downs - South West Region alone," the Premier Anna Bligh told State Parliament this morning.
"Much of the nation's LNG attention has been on West Australia's Gorgon project - but the contracts already signed for our LNG out of the Surat Basin are more than that of Gorgon.
"If all our projects were to materialise we have the potential to export in excess of 50 million tonnes of LNG per annum.
"Today - to support this potential and its exciting new industry - my Government is releasing our Blueprint for Queensland's LNG Industry.
"The Blueprint provides industry - and the community - with a clear understanding of our plans to develop the world's first coal seam gas to LNG export industry.
"We are talking about eight projects - worth more than $40 billion - looking to make Queensland home.
"We estimate that a local LNG industry exporting at 28 million tonnes a year could add more than $3 billion - or around one per cent to Gross State Product - and offer us around $850 million a year in royalties.
"That's $850 million a year for more schools and hospitals.
"This is a once in a lifetime opportunity. It is akin to what coal did to the Bowen Basin and to Queensland in the 1970s and 1980s and beyond.
"Our Blueprint also ensures the supply of domestic gas for the people of Queensland.
"Two options on how to meet our own future needs are currently being considered by industry and community and feedback to us is by 15 October," said the Premier.
"We are also addressing the industry's impacts on water resources - both produced water and the protection of groundwater."
Treasurer and Minister for Employment and Economic Development Andrew Fraser said the establishment of an LNG industry in Queensland will prove to be a watershed moment in the state's economic history.
"Today we lay the groundwork - implementing the policy platform that will frame the shape of an LNG industry in Queensland," said the Treasurer.
He said that after consultation with industry, the State had settled on a royalties regime both fair to the proponents and beneficial to the people of Queensland.
"The Government has decided to retain the current flat petroleum royalty rate of 10 per cent of the wellhead value.
"Settling on a royalty regime gives certainty to government and to industry, in order to continue the process moving forward.
"Today the government presents to Queenslanders the framework through which we foresee the development of a strong, sustainable LNG industry that will deliver jobs and economic prosperity to this state," he said.
Minister for Climate Change and Sustainability Kate Jones told the Parliament that while an emerging LNG industry was vital towards diversifying energy sources, reducing Queensland's reliance on coal and cutting emissions, any such project will need to pass heavy environmental scrutiny.
"The Department of Environment and Resource Management allocates a high priority to ensuring that environmental impacts are identified, avoided and mitigated through the environmental impact assessment process in a timely manner," she said.
The Premier said that the Blueprint balanced domestic energy needs and environmental considerations against economic benefits, extra jobs and a much-needed new export.
"This comes just days after Waratah Coal declared intentions for the $7.5 billion Galilee Power project.
"These are all indications of returning confidence to our resources sector and the overall well-being of the State's economy.
"The regions are powering ahead," she said.
The Blueprint can be downloaded at www.lng.industry.qld.gov.au
Media contact: Premier's Office 07 3224 4500
Last Updated 03 November 2009
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