Aussie LNG projects to contribute A$100bn in taxes: report
Australian LNG projects will contribute about A$100bn (US$76bn) as state and federal taxes over the next two decades, a report published by Wood Mackenzie said. The report was commissioned by the Australian Petroleum Production & Exploration Association (APPEA), Australia’s peak oil and gas industry body.
“Australian LNG projects brought onstream between 2014 and 2017 are now earning and paying substantial levels of corporate taxation. Wood Mackenzie estimates A$100bn of remaining government take is due from these projects over the next two decades,” WoodMac said.
“The total amount of taxation earned will ultimately depend upon commodity prices, offtake contract renegotiations and the ability of each project to export LNG at its respective full capacity, together with the costs each incur going forward to achieve this,” it added.
APPEA CEO Samantha McCulloch in a separate statement issued on April 24 said that there is A$100bn from LNG projects heading for taxpayers in the next 20 years, helping fund policies and build roads, schools and hospitals.
“This is the extraordinary return Australians receive from the industry’s A$400bn investment – on top of the thousands of jobs along the supply chain this supports. Gas companies are among the biggest taxpayers in Australia,” she said. “The sector is committed to ensuring domestic supply and our exports underpin our domestic energy security while delivering substantial benefits to Australians.”
The report comes after new forecasts last week showed Australia’s oil and gas industry is set to deliver A$16.2bn to governments this financial year – up from A$6.4bn previously. LNG exporters are forecast to contribute over A$15bn of this industry total.
Australian LNG exports in 2022 were a record 81.4mn metric tons, energy consultants EnergyQuest reported earlier this year. The Australian projects operated at 92% of the nameplate capacity of 88.6mn mt/yr, with most projects producing slightly less in 2022 than in 2021.