Royalties from gas have been substantially revised down, largely reflecting the current state of the global oil market, but as LNG exports ramp up the gas sector is set to deliver nearly half a billion in royalties in 2018-19 as the industry pushes up the state’s growth rate.

Treasurer Curtis Pitt’s mid-year fiscal and economic review confirms that Queensland’s coal industry continues to deliver royalty revenue to fund essential government services, according to Queensland Resources Council CEO Michael Roche.

He noted that, as the government finalises its State Infrastructure Plan, what is still missing from the government’s fiscal strategy is a source of funds for new government infrastructure investment.

This mid-year review incorporates some further sensible re-gearing of government-owned corporations, based on KPMG recommendations.

The QRC welcomed the decision to maintain CS Energy and Stanwell as separate generation businesses.

“We acknowledge the opportunities for efficiencies from the Ergon Energy/Energex merger but we would expect to see those efficiencies shared with consumers,” Roche said.

“We also will be looking for the current review by the Queensland Productivity Commission to identify further savings in the delivered price of electricity for all customers.”