Revealed: Gas ‘powers Qld’s economy’ with $65bn cash injection

The Queensland gas sector has poured $65 billion into Queensland businesses since 2011, a new report detailing the economic impact of the sector has revealed.

The Queensland gas sector has poured $65 billion into Queensland businesses since 2011, a new report detailing the economic impact of the sector has revealed.

According to the report, in the last financial year 3,477 state businesses spent $3.9 billion, with over half of these businesses located in the regions.

This story is part of The Courier-Mail’s special Future Queensland: Resources series that reveals the truth about the contribution the much-maligned resources industry makes to Queensland. You can read all of our coverage on the special topic page here.

This has led to the support of 31,291 indirect regional employees along with $1.43 billion of goods and services spent regionally.

As the states second most valuable export industry, Queensland Director at Australian Energy Producers Keld Knudsen said the report underlines the importance of the gas sector in delivering wide-ranging benefits across the state.

“Gas is powering Queensland’s economy by supporting regional businesses along supply chains, directly employing thousands of Queenslanders and supporting $890 million in high paying salaries at a time of cost-of-living pressures,” Mr Knudsen said.

“More than 3,400 local businesses have work contracts with QLD gas companies … these businesses in turn employ many more local Queenslanders in rewarding, high-paying jobs – many in regional Queensland.”

In the last financial year the industry employed 5,795 people with associated salaries of $890 million – an average of $153,645 per worker.

A worker walks past a gas pipe marked "Methane" at the Curtis Island liquefied natural gas (LNG) plant, a part of the Queensland Curtis Liquefied Natural Gas (QCLNG) project site. Photo: Patrick Hamilton

According to the report, 41 per cent of expenditure sits with regionally based businesses and $27.16 billion spent with 1,453 regional businesses between 2011 and 2023.

“The sector is a major source of jobs and economic wealth creation for the state, particularly in regional areas such as Gladstone, Toowoomba, Roma, Chinchilla and Dalby,” Mr Knudsen said.

While regions that host oil and gas activity naturally have more work and payments, including that Gladstone, Western Downs and Maranoa, the report shows regions outside of gas fields have benefited including the Sunshine Coast, Logan and Ipswich.

Construction of LNG plants in Queensland commenced in 2011 and has since resulted in an average of 62,618 jobs and $188.7 billion in total economic impact.

The economic benefits from the sector span wide including donations to 312 community organisations.

State government royalty tax payments in the 2022/23 year equalled $2.35 billion and Mr Knudsen said for every LNG tanker that left Gladstone last year, $5.9 million went to state royalties and $10 million to Queensland businesses.

“These revenues are helping the state fund critical public services and infrastructure such as its hospital building program, cost of living relief, youth justice reforms and build roads and schools.”

Mr Knudsen said continued investment in the gas sector would deliver more benefits to Queenslanders.

“The report is another example of Queensland extracting the benefits of developing the gas sector and why more exploration should be encouraged to uncover the state’s abundant supplies delivering millions of dollars of investment into regions and ensuring reliable and affordable energy.”