HUGE DEVELOPMENTS IN GLADSTONE
Gladstone
The report below outlines some key features of Gladstone
1. Two committed new projects - each over $15billion
• In December 2010, British Gas announced that its US$15bn Gladstone-based Queensland Curtis LNG (QCLNG) Project was officially underway. The project is to convert Coal Seam Gas into Liquid Natural Gas, primarily for export. Over the next four years the project will create an estimated 5k construction jobs and, from 2014, nearly 1k jobs in operations, and will have an operating life of at least 20 years. The project is estimated to increase economic activity in Queensland by A$32 billion over the project’s first decade.
• This was followed in January 2011 by a similar announcement by the Santos/Petronas/Total/Kogas consortium: US$16 bn project over the period to 2014; another 5k jobs during construction; 1k jobs in operation; exports of $120bn over the next 20 years.
2. Other $15bn+ projects
There are two other similar projects proposed that are awaiting final approvals:
•a consortium of Origin Energy & global giant ConocoPhilips (the 3rd largest integrated energy company in the US, and the 5th largest refiner in the world). This consortium received in November last year, provisional approval from the Qld government to proceed with a similar $15bn project, subject to meeting environmental approvals (which have been given to BG and Santos)
•global giants Shell & PetroChina have similar plans, following their takeover last year of Arrow Energy at a cost exceeding $3bn
3. Other projects exceeding $1bn
Other projects underway or proposed (just those exceeding $1bn) include:
•Surat Basin to Gladstone Rail Link - $1bn, which will allow coal to be transported from Wandoan (itself a $6bn project)
•Gladstone Pacific Nickel - construct a nickel and ore processing plant - over $5 billion
•Gladstone Ports Corporation - received Federal government approval to develop a new Wiggins Island coal terminal - $1.3 billion
•Boulder Steel to build steel plant producing 2.1m tonnes pa in Stage 1 (capital cost $1.3bn) and 5m tonnes pa in Stage 2
•There are also numerous other projects underway, including development of shale oil reserves with more oil that Bass Strait
4. Gladstone’s existing huge industrial base
Gladstone is already a huge industrial city. It hosts:
•The world's largest alumina refinery (Queensland Alumina)
•Australia's largest aluminium smelter (Boyne Smelters Limited)
•Australia's largest cement operation
•Queensland's biggest power station
5. Other property investment features
Gladstone has a number of features that make it a more attractive investment location than other cities (and, mainly, towns) benefitting from Australia’s resources boom.
•It is an attractive city on the Qld Coast, formerly known (as are other regions) as a tourism-based “Gateway to the Barrier Reef”
•It has a population of around 60k and, even before the recent announcements, was projected to be one the fastest growing regions in Australia
•The region also supports cattle grazing, with some grain growing, fodder cropping, and timber and tropical fruit production
•Gladstone has a very large and diverse industrial base which is set to become very much larger
•Gladstone has one of the best ports in the world, only 10 sailing days from Asia
6. Potential opportunity
Vacancy rates in Gladstone are zero, and much of the enormous capital expenditure (and associated boost to employment and demand for property) has yet to start.
We have been fortunate to secure access to a small number of boutique, off-plan 2 & 3 bed plus study townhouses in an excellent location in Gladstone (opposite the hospital, 1km from the CBD, and 3km from the beach). These will appeal to an investor seeking an affordable investment with excellent yields, and prospects for very strong capital growth based on Gladstone’s future development.
More information
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