Green light for $40 billion LNG industry

Joint Statement:

Premier and Minister for the Arts
The Honourable Anna Bligh

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
14/11/2009

Green light for $40 billion LNG industry

The Bligh Government has moved to ensure Queensland's future domestic gas supply, while providing industry with the certainty it needs to kick off its $40 billion LNG investment.

Premier Anna Bligh said when the State Government launched its blueprint for LNG industry development in September, it included the consideration of two options for ensuring domestic gas supply.

The Premier said the government decided to set aside future gas fields for future domestic supply if needed and rejected an option to require a percentage of gas from all fields to go to domestic supply.

"Today's decision provides investment certainty for the LNG industry and the potential for 18,000 jobs for Queenslanders," Ms Bligh said.

"The gas reserves in Queensland rival anything in Western Australia, and we want to make sure Queenslanders benefit through jobs growth and economic opportunity.

"This decision means projects can move forward without delay while understanding the type of commitment that government expects will continue to be made to our important domestic gas market.

"Together industry and government had been looking for a way to ensure domestic gas supply while also supporting the LNG's investment opportunities, and we've now found it.

"We want to create a business environment that allows the LNG proponents, which are contemplating more than $40 billion of investment, the opportunity to proceed and develop their projects in Queensland.

"I now expect proponents to move quickly to see this industry get underway."

It is estimated that Queensland has 500 years of gas available at the current rate of domestic use.

Mr Fraser said all developments would undergo rigorous environmental approval processes.

The Premier said a Gas Commissioner would be appointed within the Department of Employment, Economic Development and Innovation to provide a focal point for LNG industry development and for industries seeking to secure gas contracts within Queensland.

"This decision means coal seam gas producers can focus on growing the size of gas reserves which will benefit export opportunities and the local market," Ms Bligh said.

"This decision is a win for all concerned.

"It gives current investors in LNG projects surety and opens the door to further major investment in these and new projects.

"It's a win for the people of Queensland in the 18,000 jobs the industry is expected to create.

"As well Queenslanders can look forward to reaping the benefits of increases to Gross State Product around the $3 billion mark when the industry reaches peak and in the $850 million in royalties from exports expected to be earned annually."

The eight LNG projects in the pipeline are:
* Gladstone Liquefied Natural Gas Project (Santos Ltd/ Petronas)
* Queensland Curtis LNG Project ( QGC a BG Group Company)
* Australia Pacific LNG Project (ConocoPhillips/ Origin Energy)
* Gladstone LNG Project (LNG Ltd/ Arrow)
* Sojitz Corporation
* Shell Australia LNG (Shell CSG Australia Pty Ltd)
* Southern Cross LNG
* Energy World Corporation

Permanent Link: Green light for $40 billion LNG industry
Publish Date: 16 Nov 09