AGL previously suspended the Waukivory pilot fraccing operations in late January after it was discovered that waste hauling contractor Transpacific Industries had disposed flowback water into Hunter Water's sewerage system.

While both AGL and TI were cleared over any legal wrong doing over the matter, it gave activists the upper hand in the ongoing public relations battle.

The solution now seems to be trucking the flowback water for disposal in Queensland.

"AGL has engaged Toxfree Solutions, one of Australia's major waste management service providers, to transport and treat flowback water at its licenced facility, and subsequently lawfully dispose of the treated water," the gas company said on Friday.

"The flowback water will be taken to Toxfree's Narangba plant in Brisbane's north for treatment to the standards set by the Queensland Department of Environment and Heritage Protection and Toxfree's trade waste agreement. The plant is one of the most advanced waste treatment facilities in Australia."

This disposal operation might continue into October.

"There is approximately 2.7 megalitres of flowback water to be removed from the Waukivory site - about the same amount of water as is contained in an Olympic-sized swimming pool," AGL said.

"Removal and treatment of the water is expected to take approximately three months."

The company also said it remained in discussions with other waste disposal service providers for options to treat the flowback water and dispose of treated water in New South Wales.

AGL also said it had restarted the Waukivory pilot project.

The utility's underway strategic gas review is expected to consider the future of the Gloucester CSG project.

"If a decision is made to exit it remains unclear whether AGL's Gloucester gas project will progress or not under AGL," UBS said in a client note earlier this month.