THE promise of a flood of royalty revenue from the coal seam gas boom is evaporating, with the Queensland Government slashing forecast revenue by about $400 million from last year’s estimates.
But coal royalties will start growing again this financial year and will increase by more than $800 million to $2.4 billion by 2018-19.
The emerging LNG industry will deliver just $129 million in royalties this financial year compared to last year’s forecast of $561 million.
The industry has proved to be a laggard for Treasury as gas prices collapsed and combined with the delayed construction of the LNG plants on Curtis Island at Gladstone.
Last year the Government was tipping petroleum royalties would reach $636 million in 2017-18 but that has now been shaved to $467 million.
The best Queensland is hoping for now is a royalty return of $518 million in 2018-19 despite early forecasts under the Bligh government of more than $900 million.