Qld Govt eyes $500m p.a. royalty boost from new LNG projects

It isn’t all doom and gloom in the energy sector with the Queensland Government now looking at a yearly $500 million royalties bonanza from new LNG-linked gas projects, notwithstanding the fall in oil prices.

Queensland Government budget forecasts point to a growth in petroleum royalties for Queensland from $51m in the financial year just ended to more than $518m in 2018-19, assuming a longer-run of oil prices of around US$70/bbl.

This is less than originally anticipated but still half a billion dollars into a state government’s coffers. Without LNG development, Queensland would have had $500m per annum less to spend on health, education and other vital services.

It beggars belief that states like Victoria are happy to ignore the economic benefits of onshore oil and gas development.