Local Business

More than 3,000 local businesses benefited from economic contributions from Queensland's oil and gas industry in 2016/2017.

Investing in regional communities

The gas industry spent almost $56 billion with local businesses in 2016/17 and has invested more than $500 million in regional infrastructure and roads over the past five years.

Actively targeting those investments can help regional communities create new job opportunities, retain their youth population and deliver long-term outcomes that will restore the vibrancy of regional Queensland.

The Queensland Government is also seeking to return royalties generated from the onshore gas industry to the regional communities from which the onshore gas is produced.

The Queensland Government remains committed to supporting regional communities through a new regional infrastructure funding program called  Building our Regions.

The primary purpose of this program is to provide funding for critical infrastructure in regional areas of the state, while also supporting jobs, fostering economic development and improving the liveability of regional communities.

Onshore gas industry community sustainability funds

Community sustainability funds have been set aside to benefit local community organisations and facilities by the major onshore gas proponents in Queensland:

These onshore gas projects have provided these community sustainability funds in addition to measures identified as part of their social impact assessment process.

Local content checklist for business

'Local content' refers to opportunities made available to businesses based in the local community to provide goods and services to the onshore gas industry and their lead contractors.

Many gas companies have clear “buy local” policies in place that have been very beneficial to local business.

To win these contracts it is in the best interests of local business to carefully research the needs of individual projects, pre-qualification requirements and company procurement processes before bidding for the work.

This checklist is a guide only for business to consider when engaging with the onshore gas industry.

Local content tips for business

1. Find out about projects and the local market

Local chambers of commerce and economic development organisations, local and state government agencies are likely to have some information on projects and some idea of the local market. These organisations can also provide valuable business networks.

2. Know the rules of engagement for your tier level

It is vital for local businesses to clearly understand the level or tier they fit into the industry supply chain and the supplier requirements of the different onshore gas projects in Queensland. For assistance in identifying tier levels, refer to the Industry Capability Network (ICN) Tier Barometer tool.

3. Understand how work packages will be advertised and awarded

The gas companies use a variety of means to advertise and award work, including: company websites; ICN; Achilles; word of mouth; regional development organisations; local newspaper or a combination of these. Find out the relevant procurement contacts for the company and their major suppliers to learn more about how, where and when work packages are advertised.

4. Know the rules of engagement for your tier level

There are a range of private and government based business improvement programs and services aimed at enhancing business competitiveness and productivity. Actively look for ways to: improve safety; create better value for money/ be competitive; and build a track record. Every project is looking at ways to reduce costs. Positive partnerships with lead contractors or companies are important.

5. Work with others

A joint venture or partnership might present an opportunity for those businesses that cannot complete all aspects of the work. It is important to consider any relevant prior experience in this type of organisation and the likelihood of success this type of approach.

6. Promote your business capabilities

A good capability statement or profile allows business to introduce themselves in concise written form and be published on the internet. It should outline the key competencies of the business, such as: core competencies; accreditations; qualifications; track record of supply/product/services.

7. Be ready to adapt to change in the industry

Like every industry there are swings and roundabouts. Businesses need to manage cash-flow carefully. For example, with volatile commodity prices, companies can quickly and, with little notice, reduce expected work packages. Be prepared!

8. Prepare for contractual negotiations

When presented with a contract, seek legal, financial, and other appropriate advice. This may include guidance on how to manage contracts and documentation, how to position a business legally and the most appropriate financial structure for the business.

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