The British Gas Curtis Island LNG project announced yesterday by Treasurer Wayne Swan (Swan endorses British Gas project) is a big deal for Queensland, and the projected impacts are stunning (though plausible).
The British Gas project is projected to generate $2.6 billion in additional economic activity per annum – i.e. boosting Queensland’s Gross State Product (GSP) by around 1%. This is a big deal, particularly given Queensland’s recent lacklustre performance on economic growth.
Of course, a large part of the income generated will be repatriated overseas but, regardless, the project will create 1,000 ongoing jobs and contribute $1.3 billion in taxation and royalty revenue each year.
The project involves $15 billion of capital expenditure over four years, or just under
$4 billion per annum, meaning it will boost private investment spending in Queensland by 5-6% over the next four years.
For a useful summary of the project, see this fact sheet.