Queensland Mines Minister Stephen Robertson approved the application to build the 22km pipeline that will connect the Stanwell plant to the existing Duke Energy-owned Gladstone-to-Rockhampton natural gas pipeline.

The minister said the pipeline will supply up to 5.4 petajoules of quality coalbed methane gas to the magnesium project each year. The minister added the pipeline licence is required by Envestra to meet land acquisition and construction schedules to ensure Stanwell is up and running on time.

"One of the main reasons AMC chose Queensland for its $1.3 billion magnesium plant was the availability of affordable, environmentally-friendly energy sources to power the facility," the Minister said.