THE federal Environment Minister has approved Arrow Energy's Bowen Gas Project, which will supply gas to Gladstone's LNG facilities.
The major coal seam gas expansion in central Queensland consists of about 4000 CSG wells west of Mackay.
The wells also will supply gas to the domestic market.
The State Government approved the project last month.
The ABC reports the project has been approved subject to 37 environmental conditions.
Arrow Energy said the project represented a major expansion of its CSG production capacity.
It said the project would be developed in stages over about 40 years.
The Bowen Gas Project is adjacent to the existing Moranbah Gas Project, one of the largest CSG fields in Australia, which has been producing CSG for the domestic market since 2004.