The Gillard Government welcomes the announcement today from BG Group that it will invest US$15 billion in the development of its coal seam gas liquefied natural gas (LNG) operations to export gas from Gladstone.
It marks an important and exciting leap ahead in the development of Australia's vast coal seam gas reserves – reserves that in Queensland alone are estimated to be enough to power the whole state for more than 500 years.
The investment will go towards expanding existing coal seam gas production in the Surat Basin in southern Queensland; and the construction of a 540km underground pipeline network linking the coal seam gas fields to a new two train LNG plant on Curtis Island.
The BG Group project, to be developed by its Australian subsidiary, QGC, will deliver substantial and wide ranging benefits to both the state and national economies.
In Queensland alone it is estimated that this project will increase gross state product by up to $32 billion between 2010 to 2021 and will add nearly 10 per cent – around $4 billion a year – to the value of Queensland's annual exports.
Over the four years of construction from 2010 to 2014 this will provide a huge injection to our total foreign direct investment, the project alone representing an 11 per cent boost nationwide.
Most importantly for this part of regional Australia is the 5,000 direct jobs this project will create during construction and the 1,000 direct permanent positions, in addition to the jobs that will be created in the broader economy for years to come.
Gas has an increasingly important role to play in the transition to cleaner energy sources as we move to reduce greenhouse gas emissions while maintaining our energy security.
This project will encourage further development of Australia's domestic gas supply while boosting our exports and helping to supply cleaner fuel sources to our trading partners.
The expansion of Australia's coal seam gas industry and the economic benefits it will deliver will occur in a manner that meets our environmental and community obligations.
At both the state and federal level this project is bound by stringent and important environmental conditions demonstrating that economic development can occur in a manner that protects the environment.
The Government welcomes BG Group's confidence in Australia as an investment destination and their commitment to the sustainable development of its operations in Australia.
Further information on the QCLNG Project is available at: www.qgc.com.au.