(EnergyAsia, June 29 2011, Wednesday) — The economic outlook for Australia’s Queensland state is tied to its massive liquefied natural gas industry (LNG) that is showing no signs of slowing down, say analysts and government officials.
The state is expected to pull in another A$10 billion worth of new investments, with half coming from the LNG industry in the fiscal years 2011-2012 and 2012-2013. (US$1=A$0.95).
Already, Queensland has chalked up $57 billion in total investments for 2012/13 that will generate at least 18,000 new direct jobs.
The new investments are tied to converting the state’s rich coal-seam gas reserves to LNG for export, mostly to Asia. Local upstream company Santos is leading an international joint venture to develop CSM resources in the Bowen and Surat basins into LNG at a new export terminal at Gladstone. Rival Queensland Gas Company is also developing CSM in the Surat Basin for conversion into LNG at a new terminal on Curtis Island.
In West Australia state, LNG projects are expected to usher in the country’s largest mining investment boom.
The mining industry is planning to invest A$76 billion for the financial year 2011-2012.
Gateway WA project is among those that stand to benefit from the mining boom, with the government committing A$480 million of the revenue from the minerals resource rent tax to the project.
The headlong rush to promote CSM-to-LNG projects is also driving concerns that companies are neglecting to protect the environment and local water sources from chemical contamination.