Over the next 18 months, the Queensland Curtis LNG project team will complete environmental studies over land, water, air, noise and visual impact, and study social and economic impact as well as safety and risk.

QGC said the process will involve extensive engagement with parties who have an interest in the project including landholders, community organisations, industry, conservationists, government and indigenous groups.

The $8 billion joint venture with BG will build a 3-4 million tonne per annum LNG plant at Curtis Island, near Gladstone on the Queensland coast that will use 190 petajoules a year from QGC's coal seam methane tenements in the Surat Basin.

Queensland Curtis LNG also has potential to be expanded to produce up to 12MMtpa of LNG subject to the availability of additional gas reserves.

The project includes an expansion of QGC's Surat Basin gas production operations near Chinchilla and the construction of a new 380km pipeline to Gladstone.

A final investment decision on the project is expected in early 2010 and first LNG production is scheduled for the end of 2013.

"The project will give a great boost to local economies for many years to come and underpin demand for goods and services in many communities in Queensland," QGC managing director Richard Cottee said.

"The recognition of coal seam gas as an important energy commodity will also open more opportunities for gas producers and mean greater choice for consumers."

Cottee's BG Group Australia counterpart David Maxwell said the project would create more than 4400 jobs including 3600 during construction and a further 820 during operation.

"More broadly, it represents a significant investment in Queensland's gas industry to unlock supply options, allowing Australia's gas market to grow."

While QGC has yet to prove up the targeted gas reserve base of 7000 petajoules of 2P (proved and probable) reserves to supply the project, its recent 2P reserve upgrade to 2370PJ, as well as ongoing development work, places the company on track to meet its target before the final investment decision in 2010.

Many also believe that BG's $13.8 billion bid for Origin Energy is an attempt to secure CSM reserves for Queensland Curtis LNG.