With the media deeming the CSG ‘boom’ over in the Surat Basin, it’s clear to see why investors may choose to shy away from the area. But, that couldn’t be further from the truth, and industrial investors may be missing an invaluable opportunity for high returns if they choose to stay away.
When looking at investing in the Surat Basin, the words ‘boom’ and ‘bust’ need to be scrapped from an investors vocabulary. Instead, they should be replaced with ‘economic sustainability’ – since that’s what the region’s current growth rate offers.
The last 10 years saw an unprecedented growth of CSG within Roma and the Surat Basin, and according to the Maranoa Council, mining now contributes 30 per cent to the region’s economy.
Gary O’Shea, the Managing Director at Blue Commercial, believes CSG will still be a large part of Roma and the Surat Basin over the coming decades.
“There are extensive mining programs in play in the Surat Basin now, and over the next 25 to 40 years – creating a great opportunity for industrial property investors and developers to jump in and make the most of it,” Mr O’Shea said.
“By purchasing an ideal industrial property in the region, investors will see exciting short term and long term results, stemming from the expansion of the mining industry in the Surat Basin.”
“The fact is that operators will require quality and prime zoned land to base their activities from in the Surat Basin, and the current bargain property prices mean investors will get the best results if they jump in now.
“For example, Santos’ current Roma field alone covers approximately 3,000 square kilometres and there is ongoing development in the project that will continue to add production rates to the area – and that’s just one operation.”
One tip for industrial investors to keep in mind is to try and secure a property with all civil infrastructure in place since this will lessen the upfront cost and increase the potential of the investment into the future.
With current CSG market projections, investors that secure an industrial land investment in Roma now are set to reap the rewards for decades to come.
“Roma and the Surat Basin will be the centre of CSG development over the next decade, and the industry is showing no signs of stopping anytime soon,” Mr O’Shea said.
“According to the Maranoa Council, there is a massive expansion in CSG exploration and mining currently happening in the area, and this will lead to thousands of wells being drilled over the next 20 years.
“An investor only needs to look at QGC’s $1.7 billion Charlie project to see that the future of CSG in the Surat Basin is looking bright – they are currently drilling about 25 wells per month to expand their operation.
“If they continue on this growth path, the Surat Basin will have thousands of new wells in the long term – demonstrating just how integral Roma is from an investment standpoint.”
Gary O’Shea is the Managing Director at Blue Commercial, a specialist real estate business working in partnership with Ducmar Investments to provide industrial investment opportunities throughout Roma and the Surat Basin.
Blue Commercial and Ducmar Investments work to deliver long-term and sustainable industrial investment opportunities to the development industry. To see what is currently available in Roma and the Surat Basin, click here.