The State Government has approved the first licence for a gas pipeline from the Surat Basin to Gladstone in central Queensland.
Arrow Energy is planning to build an LNG facility on Curtis Island near Gladstone and hopes to start exporting in 2012.
The Government has approved a 470 km pipeline from Dalby which will cost about $550 million.
Arrow Energy spokesman Gareth Quinn says the company is also planning to build a pipeline from Moranbah to Gladstone.
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