Hon Sophie McNeill questions the government about royalty rates for onshore gas projects supplying export markets, particularly in comparison to Queensland's differential system. The government confirms royalty analysis is part of the budget process and current rates apply, but a higher rate for export is not under consideration.

AnsweredQoN 807Legislative Council
Asked
23 October 2025
Portfolio
Mines and Petroleum

QuestionView source ↗

I refer to contracts to provide gas for export to the North West Shelf facility from Western Australian (WA) onshore gas fields, and to the differential royalty rate applied in Queensland where gas provided for export is subject to higher royalties than gas supplied to the domestic market, and I ask: (a) has the government undertaken any analysis of potential royalty income that would be generated by gas onshore gas projects supplying export markets in WA; (b) if no to (a), why not; (c) if yes to (a), will the Government release these estimates; (d) what royalty rate will be applied to onshore gas projects supplying export markets in WA; (e) will the rate referred to in (b) be the same as the royalty rate paid by onshore projects supplying the domestic gas market; (f) will the Government consider applying a higher royalty rate for onshore gas projects supplying the export market; and (g) if no to (f), why not?

AnswerView source ↗

Answered
2 December 2025
Responded by
Minister for the Environment representing the Minister for Mines and Petroleum
Response time
7 days
(a)-(c) Royalty income analysis is performed as part of the State Budget royalty revenue forecasting process.
(d)-(e) Under the Petroleum and Geothermal Energy Resources Act 1967 , the royalty rate has been set at 10 per cent of the wellhead value for a primary production licence and 12.5 per cent of the wellhead value for a secondary production licence.
(f)-(g)  This is not currently under consideration.

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