Santos Gladstone LNG (GLNG), one of the three behemoth projects under construction on Curtis Island (totaling more than $60 billion), is entering its final stage of construction, with the company reporting today that the project is now 75% complete and on track for its first shipment next year.
The completion of GLNG is a harbinger of darker times ahead for Queensland’s economy, which has benefited significantly from booming capital expenditures (see next chart).
BG’s QCLNG is even further advanced with first shipment planned for later this year. Origin’s APLNG project is slightly behind the Santos’ operation with first gas planned for mid 2015.
While increased LNG export volumes will provide some offset to growth, the employment impacts as the large LNG projects are completed will be harsh. For example, according to earlier industry reports, there were 2,300 people working at the APLNG site at present, with the peak expected to be between 2,600 and 2,800 people on site. It is estimated that the multiplier effects touch 10,000 jobs. Once in operation, however, the APLNG workforce is expected to drop to an estimated 175 people – a reduction in the workforce of nearly 95%. Times that by three and add in the reduction to off-site ancillary workers, and you get an idea of the employment implications as these large LNG projects come on line.
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