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Project Insights

Queensland LNG projects hit by royalty hike

In an effort to maintain state revenue as royalty payments from the coal industry decline, Queensland is targeting petroleum with a surprise new increase the sector says threatens investment and jobs In an effort to maintain state revenue as royalty payments from the coal industry decline, Queensland is targeting petroleum with a surprise new increase the sector says threatens investment and jobs.
By Sally Bogle 13 June 2019 Asia Pacific / LNG 0 34301
The Gladstone LNG plant in Queensland. (Santos)

The key issue: The state of Queensland, home to eastern Australia’s three large LNG export plants at Gladstone, announced plans this week to increase petroleum royalty charges over the coming four years.

Interfax analysis: The success of Australia’s LNG sector in replacing coal in Asia looks likely to have a downside for the industry: increased royalties at home.

LNG operators say the surprise rate rise announced this week could deter investment in new gas field developments and limit supply to the domestic gas and LNG export markets. The...