The Reserve Bank of Australia said that LNG exports are expected to contribute almost 0.5 percentage point to GDP growth per year between 2017 and 2019.
Commenting on RBA’s report, the Australian Petroleum Production & Exploration Association (APPEA) said it should be given “more attention in the political debate about the east coast gas market.”
APPEA’s chief executive, Malcolm Roberts noted RBA’s statement confirms the significance of LNG exports to sustaining economic growth.
However, he stressed that the local and national economic benefit is under threat due to the political debate, as Queensland’s LNG industry is portrayed as the reason the market is short of gas.
“Supply in the east coast gas market is tight. However, the industry has tripled gas production on the east coast over the last five years,” Roberts said.
He added that even more supply would have been developed had New South Wales and Victoria not imposed bans and restrictions on new projects.
Roberts urged the prime minister to encourage these states to copy Queensland’s example, adding that some A$50 billion in investment through to 2030 would be needed to maintain supply.
In addition, he said that possible LNG export restrictions would jeopardise the investment, although RBA’s report says the effects of the Australian Domestic Gas Security Mechanism on overall LNG exports remain unclear at this stage.