Next steps: driving to development

Supporting the industry-led and cost-effective construction of a gas pipeline.

Gas fields need pipelines to supply the gas to customers in key markets. The Australian and Queensland Governments will analyse the outcomes from earlier work and outcomes from further gas field appraisal activities. From this, they will determine the merits of potential new pipeline infrastructure connecting the North Bowen and Galilee basins. They will also look at any potential role for governments in supporting their development.

At a high level, this examination may consider options to connect:

• North Bowen gas to customers in the local region and more broadly across the eastern states
• central and north Queensland gas customers to the east coast gas market
• the Galilee gas projects to markets, in particular through the Wallumbilla Gas Supply Hub.

A gas pipeline of sufficient capacity to service all gas producers would ensure the most efficient costs of construction and subsequent transport tariffs. This would enhance development prospects in the basins and deliver lowest cost gas to consumers.

“The single piece of infrastructure we need the most is a pipeline. Once I have a pipeline I’d develop the reserves”. - CEO, Resources Company

“There are big dividends from appropriate common-use infrastructure, which services both Bowen and Galilee basins”. - Executive Director, Queensland Government

Any further decisions and outcomes from the work with the Queensland Government will align with recommendations from the National Gas Infrastructure Plan, and the Future Gas Infrastructure Investment Framework, announced in the 2021 Budget.

Making regulatory approvals more efficient and effective.

The government will work to avoid unnecessary regulatory delays and more quickly develop industry in the region.

Gas producers in the basins can access support from the Commonwealth’s Major Project Facilitation Agency to understand and navigate government approvals.

Relevant Commonwealth regulators will prioritise applications relating to gas projects located within the North Bowen and Galilee basins. This will support projects to complete all necessary approvals on an efficient timeline, without compromising environmental or safety standards.

Identifying regional industrial opportunities stemming from competitively priced local gas.

Affordable gas will help re-establish a strong economy as part of the government’s JobMaker plan. As part of Australia’s recovery from the COVID-19 recession, we aim to make energy affordable for families and businesses and support jobs.

The anticipated benefits from more affordable gas stem in large part from the role that it can play in unlocking new industrial opportunities. This is particularly applicable in energy intensive industries. Competitively priced gas from the North Bowen and Galilee basins has the potential to open a range of opportunities in central and northern Queensland.

This may include leveraging Queensland’s existing strengths in minerals extraction, as well as broader emerging manufacturing opportunities. More diverse regional economies will strengthen the resilience of central Queensland communities.

To support the uptake of emerging opportunities, the government will continue to work collaboratively with the Queensland Government and local governments to coordinate activity. This will include making the most of existing manufacturing, industrial development and infrastructure support mechanisms, such as:

• the Australian Government’s Modern Manufacturing Initiative
• Export Finance Australia
• the Northern Australia Infrastructure Facility.

Boosting training and education opportunities to provide workers in the region with skills for gas projects.

A new gas industry would create new jobs that require unique and specialised skills. Modelling undertaken for the Australian Government estimates that by 2030, a new gas industry would create:

• up to 3,300 jobs in project construction
• a further 2,200 ongoing operational jobs Opportunities in the broader supply chain and supporting infrastructure projects would create still more jobs.

“Skillsets are reasonably flexible across the same mining mode, like open cut versus underground. But the skillsets in gas are completely different from coal, you need more plumbers, drillers and specialist experience.” - Executive, Resources Recruitment Agency

The Australian Government will support new training opportunities in the region by collaborating with the Queensland Government, industry, academia and training providers. They will work to monitor industry development and provide appropriate training opportunities for workers in the region. This will ensure that local workers have the opportunity to participate in a growing gas industry. By maximising local employment opportunities, industry will rely less on fly-in-fly-out workers. Meanwhile, local workers will see a greater share of the benefits of the industry in their backyard.

Delivering world-class training facilities to the region

$30 million is funding the Central Queensland University located in the Rockhampton and Gladstone campuses to establish a new School of Mining and Manufacturing. Construction is expected to be completed in 2022.

The school’s state-of-the-art equipment will train students for work in the mining, resources and manufacturing sectors.

The school will also be a hub for education research to further enhance teaching and learning.

Improving opportunities for young people in the region

$50.6 million is supporting ten Industry Training Hubs, with one in Townsville and one in Maryborough.

These collaborations with industry encourage young people and school-leavers to build skills and choose occupations that are in demand in their regions.

Skills Organisation pilot

The government has also established a Skills Organisation Pilot for the mining sector. This is as part of the government’s $585.3 million Delivering Skills for Today and Tomorrow package. The Pilot ensures that our education systems continue to teach the skills that industry needs.

Bringing together experts and stakeholders to achieve the best outcomes.

Partnerships and collaborations will be critical to the long-term success of the basin plan. Developing the North Bowen and Galilee basins is a responsibility for all levels of government, industry, and communities.

The government is working with a range of stakeholders to provide the necessary expertise and align efforts to maximise outcomes in the basins. The Commonwealth and Queensland governments have worked closely to develop this plan. This ensures that there is strategic alignment between the two governments, which will deliver improved outcomes around shared priorities.

Partnerships between the University of Queensland and industry experts will help to accelerate technological development and innovation to improve production.

Collaborations will bring together the right partners with the right knowledge, capitalising on opportunities and delivering widespread benefits.