The Australian liquefied natural gas (LNG) industry has marked a significant milestone, celebrating a decade of exports that have injected an impressive $127 billion into Queensland’s economy. According to the recent report from Australian Energy Producers (AEP), this economic boon has resulted from various investments and a thriving LNG sector that supports numerous local businesses and communities.
The economic analysis provided by Lawrence Consulting, commissioned by AEP, indicates that Queensland’s natural gas industry spent a staggering $58.6 billion over the last ten years. This figure includes $42.5 billion directed towards over 3,000 local businesses, community organizations, and charities. This substantial investment has transformed Queensland’s economic landscape, ushering in a new era of energy production and economic stability.
Keld Knudsen, the Queensland Director of AEP, highlighted the transformational impact of the LNG industry on Queensland’s economy and energy future. He noted that the tangible benefits aren’t just confined to monetary investments; the sector has enabled reliable and affordable energy for millions of households and businesses across the state. Furthermore, it has generated billions in yearly economic activity and government revenues, which are crucial for funding essential community services and infrastructure.
Key statistics from the report underscore the substantial contributions of Queensland’s LNG sector. Notably, nearly 60,000 jobs have been supported since the initiation of LNG exports, emphasizing the industry’s role as a pillar of economic growth and energy security. Furthermore, every LNG tanker that departs from Gladstone contributes approximately $4.5 million in royalties paid to the state, $11.2 million in spending with local businesses, alongside additional millions in salaries, community contributions, and taxes.
To further emphasize the significance of the LNG sector, Knudsen remarked on the importance of long-term policy certainty. This stability is essential for driving further investments in new gas supplies, which could unlock the full potential of Queensland’s economic growth and job creation capabilities. As the Queensland government approaches the completion of its energy roadmap, it stands at a pivotal juncture with the opportunity to enhance strategic growth through natural gas.
The report detailed several key impacts of the sector from 2014 to 2024:
Economic Contribution: The LNG industry added $127 billion to Queensland’s gross state product, reinforcing its status as a backbone of the state economy.
Local Investment: The direct expenditures made by the industry totalled $58.6 billion, which included significant investments in local businesses and community initiatives.
Government Revenues: An impressive $7.2 billion was paid to the Queensland government, and $695 million contributed to local councils, reinforcing the smooth operation of local governance and community services.
- Wages: The sector has ensured an influx of $8.2 billion in wages to Queensland workers, subsequently bolstering consumer spending and further stimulating the local economy.
The LNG export industry is not only pivotal to the Queensland economy but is also recognized as a critical player on the national stage. It provides essential energy resources to the east coast gas market, which is increasingly vital for Australia’s overall energy security. Notably, Queensland’s gas industry represented a significant slice of the $21.9 billion that the Australian gas sector is expected to contribute in taxes to both the Commonwealth and state governments in 2024-25.
Queensland’s LNG export industry also plays a crucial role in community sustainment and regional development. The bonds formed between the industry and local communities create a sense of shared benefit and mutual reliance, which fosters stability and prosperity across the region. As companies continue to invest in local infrastructure and services, the relationship between gas producers and community stakeholders becomes a model for collaborative economic growth.
However, the future of the LNG sector isn’t without challenges. With global energy markets undergoing constant evolution—shaped by factors such as climate change goals, renewable energy aspirations, and geopolitical tensions—there’s a pressing need for Queensland to adapt its strategies to align with both economic and environmental objectives.
Transparency and stakeholder engagement will be paramount as the Queensland government finalizes its energy roadmap. By capitalizing on the strengths of the LNG sector while addressing sustainability concerns, Queensland can establish a resilient energy framework that caters to both current demands and future aspirations.
In conclusion, the decade of LNG exports has undeniably reshaped Queensland’s economy, delivering undeniable financial benefits and creating thousands of jobs. As the state moves forward, fostering a balanced approach that harmonizes economic growth with environmental responsibilities will be crucial in securing a sustainable and prosperous future for both the LNG sector and the communities it supports. The next steps taken by policymakers will be determinant in overseeing the trajectory of Queensland’s energy landscape, ensuring it remains pivotal not only for the state but for Australia as a whole.
