ARROW Energy's environmental impact statement for its Bowen Gas Project in central Queensland has been approved by the State Government.
Arrow this week announced it was starting front-end engineering and design work for the proposed Bowen upstream gas project.
Arrow Energy CEO Andrew Faulkner said both decisions were critical milestones in progressing the development of Arrow's significant Bowen Basin gas reserves.
"We welcome the Queensland Government's approval of the EIS for the proposed Bowen development," he said.
"Arrow's decision to proceed with engineering and design work demonstrates the attractiveness of our Bowen Basin reserves."
Arrow received notification of the State Government's EIS approval late on Monday.
The project involves developing Arrow's tenements near its existing gas fields with staged expansion of about 4000 gas wells and gas infrastructure, in an 8000km2 area about 150km south-west of Mackay over 40 years.
The project's environmental assessment has been progressing since Arrow applied for approval to voluntarily prepare an EIS in April 2012.
The latest submission was given to the government in June 2014.
It addressed public comments and other EIS submissions, and provided further information from additional studies.
The project will now be assessed by the Federal Government.