"I have to say I've gone hot and cold in terms of my optimism over the past three and half to four years," Mr Beattie said. "I am warm now."

Mr Beattie, who is enroute to PNG for a trade mission said he was aware that ExxonMobil and Oil Search were close to securing the necessary volumes to make the project viable. However, he added there was still a long way to go to get the pipeline off the ground.

"We support this project, but it must stack up economically," he said. "There's all sorts of rumours doing the rounds at the moment though."

The pipeline will extend from PNG's Southern Highlands to industrial areas along Queensland's east coast and to markets in Sydney and Melbourne but the project has struggled to obtain sufficient customers to get under way.

Many commentators believe the prospects of the PNG project have been boosted by Woodside's decision not to seek onshore sales for its Sunrise LNG project in the Timor Sea.