Minister for Mines and Energy Geoff Wilson said today that $550,000 had been set aside in the 2008-09 State Budget to expand the Petroleum and Gas Inspectorate.

"The funds will pave the way for three inspectors in central and southern Queensland and a senior licensing officer in Brisbane," Wilson said.

Wilson said the petroleum and gas industry, particularly coal seam gas, was another booming industry in Queensland.

"We need to boost the petroleum and gas inspectorate to keep up with surging exploration and development activity and ensure the industry's safe operation," he said.

Over the past three years, the rapid increase in coal seam gas production, drilling, new pipelines and downstream gas use has had a significant impact on the workload of the inspectorate.

The inspectorate has more than 3400 locations on its inspections database.

"The demand for safety inspection services is set to continue with strong growth in drilling and production, underground coal gasification, the number of proposed gas to liquid projects and proposed new transmission pipelines," Wilson said.

Wilson said there had also been significant growth in gas distribution networks and LPG storage and distribution facilities.

"There are around 3000 megawatts of gas-fired power stations on the drawing board, a number of liquefied natural gas projects, and growing demand for domestic and automotive gas services," he said.

"Gas is a vital path to a cleaner energy future and it's in abundance in the Surat Basin. The Surat is set to rival the Bowen Basin as the state's economic powerhouse."