A diverse resources sector will ensure Queensland remains ahead of the game in Australia for growth, according to an economic report released by Deloitte Access Economics.
LNG vs. coal
Deloitte’s latest business outlook report found that while Queensland was dealing with ‘painful’ falls in coal prices, major LNG projects would soften the impact and generate big export dividends.
Queensland Resources Council CEO, Michael Roche, said the outlook remained positive for the sector beyond the current downturn in coal prices.
Roche explained: “The report confirms that Queensland’s resources diversity is a key to its continuing role as a pillar of the economy.
“The export dividend from earlier investment in minerals and energy is paying off with record exports of more than 200 million t of coal in addition to a surge in export gas sales from 2016 onwards.
Queensland gas industry
“This positive forecast could not have happened without strong bipartisan political support for the gas industry in Queensland.
“In the face of scaremongering by environmental activists, successive state and federal governments have shown their faith in the economic and environmental sustainability of a new export industry for Queensland.”
‘Top the leader board’
The report added that for the first time in a decade, Queensland will top the leader board among the states for its rising share of the national economy by 2016.
“In 2012-13, Queensland’s resources sector generated directly and indirectly one in every four dollars of the state’s economy and accounted one in every five jobs. Our latest survey of sector spending will be released next month and is expected to confirm Deloitte’s conclusions and our oft-stated view that the sector’s increasing diversity is the best insurance against commodity price cycles,” Roche concluded.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27102014/queensland-gas-sector-remains-strong-1668/