In March 1987, the Queensland Government announced approval for the project, however at that time gas producers such as CSR and Oil Company of Australia were still trying to sign Queensland Alumina (QAL) in Gladstone as the base load customer, and until such time there could be no official go-ahead for the project.

The pipeline was proposed as the start of a pipeline grid for Queensland. The application for a pipeline licence in the Denison Trough incorporated a gathering system, two laterals running north and south coming together at a central junction, and building a pipeline across to Gladstone. A pipeline to link to Wallumbilla was also planned for the future.

The State Gas Pipeline evolved from the original Denison Trough proposal to include the construction of a 562 km pipeline network, with a main trunkline of 250 mm diameter. The pipeline was to be Queensland’s second major natural gas pipeline and was estimated to cost $90 million.

The then Queensland Minister for Mines and Energy Brian Austin announced that consulting engineers, McDonald Wagner, had been engaged to develop a strategy for the construction and operation of the pipeline under contract by private enterprise.

Early in September 1987, McDonald Wagner submitted its strategy report to the Queensland Government. It was expected that the Government would implement the recommendation and that a project manager would be appointed to manage the execution of engineering, procurement, construction and commissioning of the pipeline and that perhaps two other consultants would be appointed to look after right of way negotiations, route selection and pipeline engineering.

It was planned that once approval was given by State Cabinet, the Department of Minerals and Energy would call for proposals from selected consulting firms in the pipeline field. The Queensland Government in the meantime was continuing negotiations with QAL in Gladstone for the supply of gas. The go-ahead on the project depended on the outcome of these negotiations. At this stage the Queensland Government was still believed to be aiming for a construction start early in 1988 with gas in Gladstone by late 1988.

Another significant stage in the construction of the proposed pipeline was reached in mid-December 1987, when the new Minister for Mines and Energy Martin Tenni announced that State Cabinet had approved a contract worth more than $600,000 for consultants to secure the right of way. Mr Tenni announced that Gutteridge, Haskins and Davey, and Heilbronn & Partners would have the responsibility of securing the land needed for construction of the pipeline early the following year.

The Minister said that the companies would be responsible for the negotiation of easement rights and damages claims for the pipeline, as well as negotiations of leases for the stockpiling of materials during the construction phase.

Cabinet also approved the calling of proposals for a survey consultant and an environmental consultant for the pipeline. The contract for survey work was awarded to Capricorn Survey Consultants, a Rockhampton firm, and the environmental contract was awarded to Hollingsworth Consultants.

“The completion of this pipeline will give a major boost to the economy of Gladstone by providing a guaranteed source of energy at an economical price,” Mr Tenni said at the time. “I am very confident that other major industries which have similar energy needs to QAL will be attracted to Gladstone in the near future.”

Mr Tenni said that the Queensland Government planned to own the pipeline initially and would contract out its construction and subsequent operation. Meanwhile, the Queensland Department of Mines had called for pre-registration of tenderers for line pipe.

The Department advertised registration on 22 December, with the closing date for receipt of proposals on 22 January 1988. Principal agents, trading houses, pipe manufacturers or other consortia able to supply and deliver the required steel pipe were invited to pre-register. It was estimated at the time that supply of pipe and coating would be worth in the vicinity of $20 million.

In February 1988, Mr Tenni announced that Cabinet had decided to construct a 324 mm (12 inch) pipeline over the 530 km route instead of the 273 mm (10 inch) originally planned. By this time, William Brothers – Crooks Michell Peacock and Stewart (WB – CMPS) had been appointed as the project’s engineer manager and the decision for a larger size pipe was the result of detailed technical and economic evaluation by this firm. The Project Manager for WB – CMPS was Charles Rottier, with Trevor Bird as Senior Project Engineer and Mike O’Reilly as Design Manager.

Mr Tenni also said that Cabinet had now adopted a northern route into Gladstone in preference to the lower-cost and more direct southern route to the QAL refinery in Gladstone. The northern route would take in the Calliope Industrial Estate and, it was hoped, would facilitate the building of an LPG extraction plant at Gladstone.

At a quarterly APIA dinner, Mr Tenni was clearly excited about the building of this pipeline, saying that it offered great economic opportunities for Queensland and Gladstone in particular. He said land acquisition and other aspects of pre-construction were underway.

In late August 1988, Mr Tenni announced that a short list of tenderers had been invited to tender for construction. Clough Engineering, John Holland, West Gas, Minson Constructions, Leighton Lucas and CWF Pipelines had been invited for the shorter section through Gladstone while McConnell Dowell, Saipem, Transfield and Roche Brothers were invited to tender for the longer section. Meanwhile, Tubemakers had been awarded the contract for supply of all pipe and Shaw Protection for the coating.

The closing date for pipeline construction tenders was extended to 19 October in order to split construction into two spreads. At this stage construction was expected to begin by late February or early March 1989.

Saipem was eventually awarded the contract for the entire pipeline and immediately went to work setting up a camp out of Roma.

Although bad weather contributed to a slow start, March 1989 saw clear and grade at the 130 km mark, 45 km of trenching complete, with 26 km of pipe strung and 10 km welded. The Project Manager for Saipem was Claudio Savini together with a team of Eddie Rimmer, David Mott, Kevin Pyle, Steve Parsons, Garry Nolan, Bennie Bowen, Rod Davis and Burnie Duke. Construction Manager for WB – CMPS was Ron Black with a team including Graeme McAinch, Ray Capozzi and Contracts Engineer Vin Pollock.

The pipeline was broken up into two sections with one being known as the ‘weed section’. A noxious weed called Parthenium was located in the first section and strict measures were taken to see that any equipment operating in the infected area did not leave before being thoroughly decontaminated using high pressure washing and exit through specially constructed troughs full of a weed extermination liquid.

Meanwhile, Bridge Gas Queensland was awarded the contract to operate the pipeline and this was announced on 11 April 1989. All of this work and contracts awards had proceeded without a signed contract for supply of gas to QAL. Finally, on 24 July 1989, the contract was signed.

By August 1989, the weed section was complete and the entire project was heading for completion by late 1989.

On 9 December 1989 first gas arrived at the Gladstone City Gate. AJ Lucas built the City Main from the Gladstone City Gate to QAL and gas was delivered to QAL in June 1990. The official opening of the State Gas Pipeline was performed on 25 July 1990.