13 Jun 2023
Media Release: Record gas royalties help underpin record Queensland Budget surplus
Today’s Queensland Budget reveals the benefits of new gas supply, with $7 billion of future royalties forecast from the sector to help fund the equivalent of building a new public hospital every year.
While southern states miss out on the substantial economic benefits of onshore gas development, Queensland expects a record $2.33 billion of petroleum royalties this financial year to help underpin the state’s record-breaking $12 billion surplus.
Budget papers show revenue from the gas sector will reach a total $7.011 billion in the five years to 2026-27 – up from $5.9 billion last year. The average $1.4 billion of gas receipts each year will help the state fund the equivalent of a new public hospital or 140 new schools annually.
The Australian Petroleum Production & Exploration Association (APPEA) noted that the Budget recognised the resources sector as “a traditional driver of investment, economic growth and jobs”.
APPEA Chief Executive Samantha McCulloch said: “Seven billion dollars from the Queensland oil and gas industry is helping fund important public services and infrastructure like new hospitals and schools for the state’s growing population.
“It’s important to remember that a decade ago Queensland didn’t have a specific line in its Budget papers for petroleum royalties. Now it’s worth a new public hospital every year.
“This is one of the benefits of new gas supply and the direct return to the Queensland public from the hundreds of billions of dollars of industry investment and stable policy and regulatory settings from the State Government over more than a decade. This year’s Budget, for example, further supports gas exploration to unlock new energy in the Bowen and Galilee basins.
“East coast energy system pressures have shown how Queensland gas keeps the lights on as New South Wales and Victoria outsource their energy security with bans and uncertain regulatory environments chilling investment in new supply. Meanwhile, Queensland’s long-running support of onshore gas development sees it continue to enjoy substantial economic benefits, with the supply chain supporting around 30,000 jobs, millions of dollars being invested in regional communities and billions flowing to the government.”
Ms McCulloch said the future role of gas was shown with the new $85 million commitment to upgrade CS Energy’s Brigalow Hydrogen-ready Gas Peaking Plant, illustrating how gas will back up renewables in electricity generation under the Queensland Energy and Jobs Plan.
“Queensland understands how to extract the economic benefits from gas while charting a path to net zero as gas backs up renewables, replaces coal, supports industry and manufacturing and kickstarts low-carbon hydrogen production,” she said.
Media Contact: 0435 113 224