The $A24.5 South Coast Supply Project by Energex will be carried out in four stages, with the first 12.3km segment from the intersection of Wembley and Browns Plains Roads to be completed by June next year at a cost of $A8.5 million.

Queensland energy minister John Mickel said the project was one of the biggest natural gas enhancement projects for South East Queensland and would greatly assist more customers to gain access to reticulated gas supplies.

The project involves laying a new 20cm-diameter pipeline from the existing Ellen Grove Gate Station at Forest Lake to the Yatala industrial estate to augment the natural gas network that runs from southern Brisbane to northern New South Wales.

Based on current estimates of increasing customer demand, the South Coast Supply Project will cater for demand through to the year 2030.

Stage two of the project will be constructed by 2010, stage three by 2012 and stage four by 2014.