A $100 MILLION contract to build 25km of pipelines in the Surat Basin is expected to create about 250 jobs in the region.
The QGC line - to be built by Brisbane's Murphy Pipe and Civil Constructions - will move the gas and water between facilities west of Dalby in southern Queensland.
Work is expected to begin almost immediately and be finished mid-2013.
The gas pipelines will link three field compression stations to a central processing plant as the accompanying water pipelines connect ponds to a treatment plant south of Chinchilla.
This latest announcement will form just part of the Queensland Curtis LNG project, which eventually will link 2000 coal seam gas wells in the Surat region to a processing plant at Curtis Island near Gladstone through 540km of underground pipeline.
QCLNG project director Mitch Ingram said work would expand in the next 12 months.
"Local communities are reaping the benefits of our spending on the construction of infrastructure for our QCLNG Project," Mr Ingram said.
"We have spent more than $400 million in the Western Downs region between Toowoomba and Roma and there is much more to come."