Investment Property Australia wide
The region of Western Downs is part of a broader region that sits on the cusp of a $180 Billion Dollar Mining & Energy Industry emerging from the resource rich Surat Basin Energy province.
This region has over 60 major projects scheduled for commissioning by 2020 which will create an estimated 12,500 new jobs well into the future increasing tenfold by 2030. Doubling the the regions GRP.
Long term economic growth is almose assured by leveraging off investment in the energy sector which offers long term economic growth.
The Surat Basin will become one of the boom economies in Australia, with towns west of and including Toowoomba, experiencing new wealth and population growth. Miles and Wandoan, where farming of crops and cows currently underpin economic growth in the region will be superceded by the multi billion dollar resources ventures that will change the Surat Basin forever.
Recently one of the major companies making plans for this region announced two export projects worth $80 billion. Britain’s BG Group has signed a $60 Billion deal for a supply of LNG to a Chinese company for 20 years. Followed by BG Group’s announcement of a $20 billion deal with Japanese buyers. BG Group plans to extract coal seam gas from the Surat Basin, pipe it to Gladstone, and convert it to LNG in billion-dollar processing facilities (currently under construction) and then export the LNG directly from the Gladstone Port (which is undergoing currently a $3.5 billion expansion upgrade).
It is not only CSG to LNG industry, but massive coal mines, huge new power stations, new rail lines linking all these to export facilities. A massive industry in it’s own right.
The 470km, $600 million natural gas pipeline, from the Surat Basin to Gladstone is currently under construction. The Queensland Mines and Energy Minister says the pipeline was the first of several licences to transport gas to proposed LNG facilities. Arrow Energy will transport natural gas from CSG fields near Dalby to a proposed plant at Fisherman’s Landing near Gladstone.
Market Briefs : BHP Billiton’s first half year income in 2013/14 was almost a Billion Dollars more than expected. Rio Tinto is expanding is port, rail and mine operations to increase production to 290 million tonner per annum. Investment into mining operations is not expected to peak until as early as 2016 and predicted to last through to year 2029. Australia is planned to become the worlds largest LNG exporter being the only viable alternative to coal
There is definately a correlation and link between Resource Activity and Property on the back of major industry investment, job creation and population growth. The consequent result is an increased demand for residential real estate. Increased demand = Increased values and Higher Rental Yields.
Roma is considered the capital of the Maranoa Region supported by it’s $2 Billion Economy with 70 gas fields in the Roma area.
The median house price in Roma has growtn by 13.4% over the last 10 years and by 15% in 2013.
Roma has an exceptionally low unemployment rate of 2.1% as at end September 2013 where the labour force has grown by over 15% in the past 5 years.
With current population growth, Roma has to supply 200 new dwellings per annum to meet demand for owner occupied and rental property. Roma has a vacancy rate of only 2.89% due to increased population growth based on the back of the resources industry creating new jobs.
See more on Roma here
Qld Gas Company and BOC Group have announced plans to build a $100 million LNG plant near Chinchilla, to be located near the source of CSG.
French company Areva and Qld State owned CS Energy applied for federal funding for a portion of the $200 million solar thermal generator in addition to the 750 megawatt Kohan Creek power plant near Chinchilla.
Engineering contractor MacMahan Holdings says it has been awarded a three (3) year contract valued at more than $190 million to develop and operate the new Cameby coalmine in the Surat Basin in the Miles area. This contract has been awarded to Syntech Resources, and is for MacMahan to undertake all mining to Stage One (1) of the project.
Xstrata is also well advanced with plans for a much bigger coalmine near Wandoan which includes building a new rail line to the coast.
Terry Ryder is correct in stating that “The ‘simplistic mining boom is over‘ rhetoric is causing concern because many people don’t understand what’s driving the resources sector”
CSG / LNG is the new electricity and with 20 year supply contracts already in place, how can the resources boom be over when not one Shipment of LNG has yet to leave Gladstone’s shores? This is a multi billion Dollar industry yet to begin …
Ryder says, “Essentially all that has happened is that prices for iron ore and coal have fallen off their peak. In the overall context of the resources revolution, which will extend beyond my lifetime, this is a short term phenomenon and will cause only a minor hiccup, just as the GFC was a small speed bump in the rise of the resources sector. What has happened, it has caused some mining companies to evaluate the timing of some projects. Each announcement of a downsizing or project deferral – and there have been relatively few – is seen as confirmation that the party is over.”
Fact : The resources revolution is really about gas. The largest resources projects around Australia are all liquefied natural gas (LNG) enterprises. They dwarf anything happening in Western Australia’s iron ore industry or Queensland’s coal sector. Nine gas mega projects entail capital expenditure totalling $220 billion, and the general theme coming out of these ventures ares expansion – not contraction.
The $23 billion Australian Pacific LNG Project – is one of the four giants focused on Gladstone – has its first train under construction and has just approved plans for a second train, having secured a 20 year supply contract with Japanese Company Kansai Electric Power.
Three of the four LNG projects targeted on the Surat Basin (extraction) and Gladstone (processing and export) are well under construction and the fourth is advancing steadily towards a construction start in 2013-2014. The four Gladstone ventures involve around $70 billion in capital expenditure. This is why Australia is forecast to become to world’s biggest LNG producer within the next 7-8 years, overtaking Qatar, Indonesia and Malaysia. Australia has reserves likely to last the next 100 years, and new discoveries are happening regularly!”
Surat Basin information Links