PERTH (miningweekly.com) – The ramp-up in liquefied natural gas (LNG) production during 2015/16 was expected to grow the Queensland economy by around 6%, Treasurer Tim Nicholls revealed this week.

In his Budget presentation, the Treasurer noted that the increased LNG production would result in a surge in exports, which, combined with an improved domestic economy, could boost economic growth to an 11-year high by 2015/16.

The Australian Petroleum Production and Exploration Association (Appea) pointed out that Queensland’s gas industry was spending about A$70-billion on coal seam gas (CSG) to LNG projects with first exports planned later this year. 

Appea COO for Eastern Australia Paul Fennelly noted that as a result, a significant portion of the more than A$2.8-billion in resources industry revenue in 2014/15 would be coming directly from the gas industry. 

“Ten years ago, there was barely a natural gas industry in Queensland. Today, we are looking forward to Queensland’s growth rate being the highest in the country off the back of gas exports,” he said.

“It’s an extraordinary achievement. It shows what’s possible when companies, landholders, governments and the community work together to make the state’s natural gas industry not only viable, but [also] successful and safe.”

Fennelly pointed out that if resource industry royalty payments were spent solely on education, they would fund almost 40% of Queensland’s entire education budget.

“The Queensland government, in stark comparison to New South Wales and Victoria, continues to show strong leadership. The result is that the people of Queensland benefit from the development of a new industry under strong and sensible regulations,” he added.

The state government this week earmarked A$450-million of its state Budget to the development of natural resources and mines, including A$3.8-million for a CSG Compliance Unit, A$6-million for the Abandoned Mines Land Programme and A$16-million to fund the state’s regional natural resource management bodies.