Enertrade is the owner, operator and builder of the pipeline, which stretches stretching 370km from the Moranbah gas fields to Townsville. The pipeline is part of a $500 million project to supply coal seam methane gas from the North Bowen Basin to fire North Queensland’s first major, baseload gas-fired power station.

Enertrade has entered into a 15-year gas sale agreement with coal seam gas company, CH4, which is now delivering 10TJ of gas per day to Enertrade.

The off-peak Townsville Power Station is being substantially upgraded and converted from using aviation fuel to coal seam gas by Enertrade. It is due for completion in February 2005.

The pipeline has the capacity to supply more than the electricity plant’s needs – its use could be by installing additional compressors to pump more gas, which could generate up to $1 billion in industrial development and jobs growth, according to Enertrade.

"The completion of the pipeline is a major milestone so that next year we will see Queensland’s significant reserves of coal seam methane gas put to very good use," said Queensland Premier Peter Beattie.

Beattie said converting the Townsville Power Station to coal seam gas would reduce greenhouse gas emissions by more than one million tonnes a year – equivalent to taking 250,000 cars off the road.