Amerigans first-ever gas export from Australia could boost Queensland economy
LONDON – Australian gas exports could boost the Queensland economy by as much as $5 billion a year as a result of the Queensland Government’s first-of-its-kind gas export scheme, according to a new report.
Key points:The $5bn program could see gas exports from Queensland hit $4.4bn a year by 2030 and up to $25bn a decade by 2050The State Government has estimated the project could boost $25.5bn in economic activity across the stateA report commissioned by Queensland Premier Annastacia Palaszczuk says the gas export could help boost the economy by $2.8bn a week in 2030 and as much $50bn a generation by 2050.
The Queensland Government has said the gas exports will help boost Queensland’s economy by more than $5.2bn a day in 2030, while the total cost could be as high as $8.2b a day.
But the report commissioned from Australian energy consultancy Energy & Energy Economics, which has also provided research for the Queensland Opposition, has warned that Queensland could be hit hard by the gas tax if the gas were not exported.
The report, released on Wednesday, says the state’s $1.8 billion gas tax could be a drag on the economy if exports were not allowed to continue.
“We have a big opportunity to export this fuel, but it is going to have to be in a regulated and tax-neutral way,” Dr Paul Steed, senior research fellow at the EEA think tank, said.
“If the gas is exported it will be taxed and you are going to be seeing the costs of the tax rise.”
You have to have a very favourable trade arrangement with the EU that is not a gas-sharing arrangement.
“The report says exporting the gas would be more profitable than importing it, with an average of about $7.50 a tonne being exported.
It also suggests exporting the fuel would create a $1bn benefit to Queensland’s $14.5 billion gas infrastructure.”
Importing liquefied natural gas from overseas would generate a net benefit of $4 billion per annum for Queensland,” it says.”
That is equivalent to the annual GDP of Queensland.”‘
It will be very difficult to sell’There is also the prospect that the gas could be exported to countries such as the United States, where the Government has committed to invest $2bn over 10 years in the project.”
The prospect of exporting liquefried natural gas to the US has raised a number of concerns and there is no doubt that it will probably be very, very difficult for Queensland to sell the gas to those countries,” Dr Steed said.
He said the ESEA report did not mention the potential impact of the gas taxes in Queensland.”
It’s a bit like the issue of gas taxes and they don’t really seem to affect Queensland’s export potential.
The only thing that could change that is if the price of the fuel goes up,” he said.
The EEA’s report suggests the State Government’s proposed gas export tax, which is due to be passed into law on June 6, would raise about $25b a week by 2030.
Dr Steed warned that if the state did not allow exports, the Queensland Gas Association (QGA) would seek legal action.”
There are quite a few very large exporters that are quite upset by the Government’s decision, so it will almost certainly be very expensive for Queensland’s own economy to be hit,” he told ABC Brisbane.”
So the whole point of exporting is to bring this price down, so that we can bring this investment to Queensland.