Australia: CSG Development Boosts Qld Economy by AUD 6.2 Billion

CSG Development Boosts Qld Economy

CSG development has boosted the Queensland economy by more than six billion dollars in its ramp up phase.

More than half of the project spend by Queensland’s CSG/LNG players is flowing back into home-grown contractors and companies, and supporting local jobs.

Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said he was encouraged to see more than half of total project spend by two of the three LNG projects—Gladstone LNG and Queensland Curtis LNG Projects—directly benefiting state businesses.

“This is the first big tick for the LNG industry,” Mr Seeney said.

“In the latest report to the Coordinator-General, QCLNG and GLNG advised of the $11.34 billion that has been spent to date, more than $6.2 billion has been spent in Queensland.

“The figure clearly shows LNG proponents are working to ensure they provide local businesses fair and reasonable access to opportunities arising from their developments.

“This figure relies on data provided by only two proponents. APLNG has also committed to reporting on local spend as a part of its local content strategy and this will show that more money is pouring into the Queensland economy.

“The report to the Coordinator-General shows that of the 135 contracts awarded by the two projects, almost 80 per cent of those (107) were being won by Australian businesses.

“Of the 401 sub-contractor packages on offer, 332 of those—or 83 per cent—were awarded to Australian contractors, with just 17 per cent going overseas.”

The latest data comes in the wake of findings that major construction group Bechtel reported 88 per cent of the near 6000 construction workforce on the three Gladstone LNG projects—including APLNG—are Queenslanders.

Mr Seeney said the spend for the two projects was being spread across the regions, with the lion’s share going to South East Queensland.

LNG World News Staff, July 19, 2012