The Queensland government on Wednesday took steps to pave the way for the North to East Australia Pipeline stage which is set to carry gas from the Northern Territory's Beetaloo Basin.
The project involves the construction and operation of a 900km pipeline from the NT border to Queensland's southwest gas network.
It would form part of a longer 1560km line from the NT's Beetaloo Basin.
Gas tapped in the Beetaloo and a pipeline to take it to the east coast are hotly opposed by environmental groups which cite fracking risks to aquifers and high carbon emissions.
The Queensland government on Wednesday declared the North to East Australia Pipeline stage a coordinated project, setting the stage for a whole-of-government planning and environmental assessment.
APT Petroleum Pipelines Pty Limited, a subsidiary of APA Group, proposes the line's construction and operation, linking it with the existing South West Queensland Pipeline, 90km east of Ballera.
Completion of the whole line will mean Beetaloo gas could be sent to the Queensland port of Gladstone for export or sent south to domestic markets on Australia's east coast.
The project could transport up to 600 terajoules of gas per day once operational.
The project was expected to deliver a significant economic boost to regional Queensland and create up to 800 construction jobs and ongoing operational roles, the state government said.
Subject to environmental approvals from the Queensland, NT and federal governments, construction could commence as early as 2029.
"This project will help power two big priorities for Queensland – deliver jobs and investment as well as affordable, reliable and sustainable power for Queenslanders," Deputy Premier Jarrod Bleijie said in a statement.
"Our Energy Roadmap backs a pragmatic approach, with gas a key element in delivering an affordable and reliable energy system. "
APA Group CEO and managing director Adam Watson welcomed the declaration as an important milestone for the project "that would bring the Beetaloo to life".
Being given coordinated project status enabled APA to streamline environmental approvals rather than work through multiple departments, he told AAP.
"The Beetaloo is a significant project that will strengthen the Australian economy by providing energy security for the east coast market," Mr Watson said.
"It would be a travesty if it didn't get up for any political reason."
It comes a day after first gas from fracking projects at Beetaloo Basin flowed into NT homes and businesses.
NT Chief Minister Lia Finocchiaro was on hand when the gas was turned on at US company Tamboran's Shenandoah South development, with more than 40 terajoules a day going into the territory's gas grid.
Environmental groups have slammed the Beetaloo gas project, saying it signals the start of an "environmental disaster".
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