Queensland gas could add more value than 2032 Olympics: Appea
Australia’s peak oil and gas body Appea on September 19 released an independent report into Queensland’s gas industry which shows the potential for it to add more value than the 2032 Olympic games to the state’s economy. The 2032 summer games are scheduled to be held in Brisbane, Queensland.
Appea CEO Andrew McConville said the EY report showed the oil and gas industry has the potential to turbocharge Queensland’s economy for years to come.
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“When it comes to adding economic value to Queensland, natural gas clearly takes the gold,” McConville said. “Gas means jobs, gas means cleaner energy and gas means economic prosperity for our state, particularly regional Queensland.”
The EY report shows the industry has already added A$106bn ($77bn) or 3%/year to the Queensland economy over the last decade, employing more than 36,000 workers and paying A$13bn in taxes.
“But this is the tip of the iceberg, EY are predicting a bright future for Queensland’s gas industry driven by high demand for cleaner energy in Asia as they look to switch from coal to gas due to our product’s lower emissions,” he said.
“EY have found that fully unleashing Queensland’s gas industry potential could result in a further A$30bn in investment producing 7000 PJ of production capacity in the Queensland oil and gas industry over the next 20 years,” McConville added.
EY said with the right policy settings a further A$129.3bn could be added to Queensland’s gross state product in the next twenty years under a high growth scenario, with Queensland’s economic output due to gas being A$8.7bn higher in 2026 — this represents almost 2.5% of the current Queensland economy.
“Even under the low growth scenario it is A$64bn,” McConville said. “The benefits of this investment are particularly pronounced in the short-term, with almost 2200 extra full-time jobs created in 2026 under a high growth scenario.”
Acting Queensland director Matt Paull said the report also says that parts of the economy will benefit from a reduction in gas prices and an increase in productivity. The benefits for the environment are also immense, said Paull.
“The Australian government estimates Australian LNG exports have the potential to lower emissions in LNG-importing countries by about 170mn metric tons of CO2-equivalent (Mt CO2‑e)/year by providing an alternative to higher emissions fuels. That equates to over a third of Australia’s total annual emissions,” Paull added.