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The Australian Government is expected to receive only AU $0.8 billion in PRRT revenues in 2019-20,
or 1.97% of LNG export sales. At the same time, the Government of Qatar is forecast to collect AU
$26.6 billion in royalties from LNG exports, equivalent to a share of 23.35%.
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80 30
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40 15
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2011.0 2012.0 2013.0 2014.0 2015.0 2016.0 2017.0 2018.0 2019.0
Export volume (bcm) Val ue (bil l i ons AUD)
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Export volume (bcm) Value (billions AUD) Export volume (bcm) Value (billions AUD)
Additional revenues streams include corporate income tax and returns on investments made by
state-owned companies in the sector. In 2015 alone, Qatar Petroleum's joint venture partner Shell -
which has only a 30% holding in one of the seven plants - paid almost US $1 billion in taxes,
production share and fees to Qatari government bodies. 2 Estimated combined total government
revenues from LNG production in 2013-14 is AU $53.67 billion. 3
In 2020, export revenues are forecast to be US $40-47 billion. 4 If the relationship between royalties
and export revenues remains constant, then under the conservative scenario used by the IMF, the
Government of Qatar would receive AU $12.54 billion in royalty payments from LNG export sales of
AU $53.73 billion.5
The unique characteristics of the oil and gas industry, namely the need to "collect an appropriate
return for the community from allowing private firms to exploit non-renewable resources", its
volatility and high capital requirements justify special treatment through the tax system. 6 The
primary instrument for this purpose in Australia is the Petroleum Resources Rent Tax or PRRT.
Analysis of PRRT revenues by commodity, and tax revenues from other sources such as income tax
that are attributable to LNG production, is not publicly available. This paper uses the PRRT as a
conservative measure to compare the Australian Government's revenues from its LNG export
industry with those of the Government of Qatar. Unlike the royalties cited above, PRRT includes
revenue from other oil and gas commodities, not just LNG, and applies to production for domestic
consumption as well as production for export.
In 2014-15, revenues from the PRRT, levied on all oil and gas production, were AU $1.87 billion. This
is equivalent to 10.9% of the value of LNG export revenues. 7
The value of LNG exports is set to increase from AU $17.14 billion in 2014-15 to AU $40.63 billion in
2019-20, an increase of 137%.8 Yet in 2019-20, the Australian Government's PRRT receipts from all
oil and gas production are expected to be only AU $0.8 billion, or 1.97% of LNG export sales. 9
As Australia becomes the world's largest exporter of LNG, as compared to Qatar, it is failing to
ensure a fair share of government revenues from the exploitation of our nation’s natural resources.
Data notes
Exchange rates and energy conversions used
Data sources
Data bibliography
IMF Country "Qatar: 2015 Article IV Consultation - Staff Report; and Press Release", IMF
Report 2015 Country Report No. 15/86, International Monetary Fund, Washington, D.C., March
2015. Available at https://www.imf.org/external/pubs/ft/scr/2015/cr1586.pdf.
BMI report "Qatar Oil & Gas Report - Trade - (Pipeline and LNG) - Q3 2016", BMI Research -
Industry Forecast Scenario, 30 June 2016. Available from emis.com.
"US shale gas Fattouh, B., Rogers, H., & Stewart, P. (2015). The US Shale Gas Revolution and its
revolution" Impact on Qatar’s Position in Gas Markets. Center on Global Energy Policy:
Columbia University. Available at
http://energypolicy.columbia.edu/publications/report/us-shale-gas-revolution-
and-its-impact-qatars-position-gas-markets
REQ historical Renewable Energy Quarterly, Office of the Chief Economist, Department of
and forecast Industry, Innovation and Science. Available at http://www.industry.gov.au/Office-
data, March of-the-Chief-Economist/Publications/Pages/Resources-and-energy-quarterly.aspx#.
and June 2016