Economic Synergies from Tighter Agri-Business and Coal Seam Gas Integration

Abstract

In addition to government royalties, Australia's coal seam gas (CSG) development has been beneficial in terms of facilitating regional economic development and growth, expansion of remote populations and facilities, increased employment opportunities and improved regional infrastructure, mainly in regional Queensland. There is substantial revenue potential for the Australian economy from the export of the resource to international energy markets. Many current CSG operations in Australia are located in prime agricultural-cattle grazing regions. Failure to identify potential coexistence opportunities between agribusiness promoting industries (API's) and the CSG industry could limit the agriculture value chain and consequently restrict Australia's food security and agricultural export potential. The economic benefits of the CSG industry combined with the importance of a sustained agricultural industry lay the foundation for investigating coexistence opportunities between these industries. Emphasis has been placed on potential synergies exhibited by the CSG industry (namely from CSG by-products) and the local agricultural industry which is typically dominated by API's.