Federal Infrastructure and Regional Development Minister Anthony Albanese said the move underscored the government's efforts to support investments which would position Australia to take full advantage of the global economic recovery.

"If it proceeds, the expansion of the Pluto LNG park would deliver considerable economic benefits to the national economy, with each train expected to create up to 3500 construction jobs and generate significant export earnings," he said.

The Pluto expansion involves the construction of two additional trains. Woodside has appointed Foster Wheeler, WorleyParsons and KBR to carry out front-end engineering and design studies for the expansion.

The company recently embarked on a major exploration campaign of up to 20 wells in the greater Pluto area as part of its plans to find more gas.

Woodside will need to tap into more than 70 trillion cubic feet of gas to support the expansion.

FEED work is expected to be completed in the second half of 2010 with a final investment decision due before the end of the year.

The $12 billion Pluto Train 1 is 82% complete and is targeting first gas by the end of 2010 and first LNG in early 2011.