The development follows the announcement last week of a contract to supply up to 21 Petajoules (PJ's) of gas over the next five years to the Queensland electricity generator CS Energy.
Mosaic is able to provide the gas from any of its Surat-Bowen Basin fields but is fast tracking the development of its Waggamba field.
The pipeline will run from the Waggamba Field for 25 kilometres joining Mosaic's Silver Springs gas treatment facilities at the Taylor oil and gas field. The Production Licence covers 25 sub-blocks and an area of 76 sqkms.
The engineering design of the 25 km Waggamba pipeline is being completed in-house by Mosaic and the pipe has been ordered for delivery in early August.
Mosaic has also made significant progress on its 70 sq kms 3D seismic survey covering the Waggamba Field and surrounding gas-prone areas.
With the survey due for completion by October, currently 25% of 2781 shot holes have been drilled; 85% of the 228 kms of shot lines have been cleared; and 78% of the shot lines have been surveyed.