QLD Mining & Energy Bulletin

Queensland���s gas prince eyes off challengers Queensland���s gas industry is set for further gains in 2013, as the $60 billion industry moves to become the state���s second-largest behind coal, writes Anthony Fensom. Q ueensland���s gas boom is set for further gains in 2013, as the $60 billion industry moves to become the state���s second-largest behind coal. After a year of mixed fortunes for the industry, including regulatory changes, rising cost pressures, economic and market volatility and environmental issues, proponents and not least the Queensland government are hopeful of continued growth. The Queensland government is keenly anticipating the forecast $850 million a year in royalties from the Gladstone liquefied natural gas (LNG) projects, which will convert coal seam gas (CSG) to LNG for export to Asia. [COAL SEAM GAS] The resource-hungry region is expected to account for 62 per cent of the growth in demand for LNG by 2020, making it an obvious customer for Australia���s burgeoning export industry. 70 According to a recent Deloitte Access Economics report, Australia is on track to become the world���s second-largest exporter of LNG, currently hosting eight of the 14 plants under construction or committed to around the world. Queensland���s CSG industry is also a growing source of jobs, employing more than 18,500 workers as of September 2012, according to the Australian QLD Mining and Energy Bulletin Summer 2012/13 Petroleum Production and Exploration Association (APPEA). workers for new mining and other projects in However, APPEA has warned against complacency, saying that the nation���s high-cost environment and the emergence of new LNG competitors overseas would make it more difficult to win market share and attract investment. ���There are currently more than 8,400 people Regulatory changes continue For its part, the Queensland government has been anxious to show its support for CSG amid a downturn in the state���s coal industry by moving to ease regulatory processes and encourage greater cooperation between landholders and companies. After launching the Gasfields Commission in April 2012 with representatives from industry, landholders and the community, the Queensland government announced legislation in November formalising the powers of the new body. the future,��� Deputy Premier Jeff Seeney said. working on LNG facilities on Curtis Island with more than 88 per cent of these workers being from Queensland. While this industry is pumping billions of dollars into the local economy and will generate significant royalty revenue, it must co-exist with the agricultural sector and better work with the��rural landholders and regional communities that we��depend on for food and fibre.��� The legislation also covered the establishment of the Gasfields Community Leaders��� Council, a group comprising representatives from the agricultural and CSG industries along with community groups and government. The government has also announced moves to improve regulatory processes under its Streamlining Bill and new Comprising chairman John Cotter and six commissioners, the statutory authority is entrusted with improving ���co-existence between resource companies, landholders and communities,��� according to a November 27 statement. regulations on the treatment of CSG water, ���The coal seam gas to liquefied natural gas (CSG-LNG) industry will inject almost $60 billion into the Queensland economy. These projects are expected to create more than 18,000 jobs and leave a legacy of skilled welcomed the establishment of the as well as establishing in September a revamped Department of Environment and Heritage Protection. According to Tarnya Fitzgibbon, partner at Cooper Grace Ward, farmers had Gasfields Commission, in addition to the move to make compensation agreements between gas companies and landholders more transparent.

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