The Queensland Government has officially approved the construction of the $983 million Fitzroy to Gladstone Pipeline, delivering significant benefits to Central Queensland.
Not only will this almost $1 billion project provide water security to the Gladstone region, but it will also support hundreds of jobs. Approximately 400 jobs are expected to be created at peak construction phase along with 25 apprenticeship and traineeship opportunities.
“My Government is committed to building the infrastructure Queensland needs to support good jobs in new industries during the clean energy industrial revolution.
“Nearly $1 billion has been committed to this important project, which guarantees water security and sends a powerful signal to the hydrogen sector that Queensland is the place to be for clean energy.
“Gladstone will be the engine room when it comes to delivering our landmark Queensland Energy and Jobs Plan – that means good secure jobs now, and into the future,” Premier Annastacia Palaszczuk said.
The industry in Gladstone currently generates about $6 billion in gross regional product annually, with these activities dependent on significant quantities of water.
Hydrogen proponents under development in the region that have future water requirements include the Fortescue Future Industries hydrogen electrolyser manufacturing facility, Mitsubishi Gas’ proposed hydrogen to green methanol plant, the Stanwell / Iwatani Central Queensland Hydrogen Project, Orica and H2U’s proposed green ammonia plant as well as Rio Tinto and Sumitomo’s proposed hydrogen plant.
“The Palaszczuk Government’s contribution towards this vital infrastructure for Central Queensland is the first investment from our new progressive coal royalty tiers.
“This revenue was generated in Central Queensland and as we promised, it will be invested in regional Queensland,” Treasurer and Minister for Trade and Investment Cameron Dick said.
The granting of infrastructure approval aligns with recommendations made in the Bradfield Report that was commissioned by the State Government and prepared by the expert Bradfield Regional Assessment and Development Panel.
Previously, the Queensland Government appointed Gladstone Area Water Board to undertake the delivery of pre-construction works for the pipeline project. These works included procurement activities, addressing land access arrangements and determining long lead items that will ensure the project is ready for construction.
“The Bradfield panel recommended investing in the use of water closer to where it falls as well as developing Regional Water Grids, and this is exactly what we are doing.
“The Fitzroy to Gladstone Pipeline is clear evidence the Palaszczuk Government is serious about listening to experts and taking action to ensure water security in Queensland.
“This pipeline will also allow Gladstone to access their water allocation from Rookwood Weir, which we know means security in good jobs and the delivery of safe and reliable water services to enhance liveability of our region,” Water Minister and Member for Gladstone Glenn Butcher said.
Works on the Fitzroy to Gladstone Pipeline are already underway, with major construction to begin later this year. The project is anticipated to be completed in late 2026.
The new pipeline will span 117 kilometres, running from the Lower Fitzroy River in Rockhampton and connecting to Gladstone Area Water Board’s existing water network at Yarwun.
The project will also deliver a water treatment plant, reservoirs and pumping stations at several locations along the pipeline’s alignment including Laurel Bank, Alton Downs and Aldoga.
Once completed, the Fitzroy to Gladstone Pipeline will have the capacity to transport up to 30 gigalitres of water a year from the Fitzroy River to Gladstone.
“Today’s announcement is pivotal in securing water for Gladstone’s industry and will support the hydrogen and renewables industry, as well as help sustain the Queensland economy and provide jobs, and I thank both the Queensland Government and Minister Butcher for their decision.
“As the Delivery Authority for the project, we look forward to partnering with local suppliers to deliver tangible benefits to the Gladstone region such as jobs, supply contracts and local capability raising,” Gladstone Area Water Board CEO Darren Barlow said.
The Gladstone Area Water Board and Queensland Government have awarded a $714 million design and construct contract to the 50/50 joint venture between BMD Constructions and McConnell Dowell.
The joint venture’s core component for this contract is the commitment to utilising local content. This will include a $10 million commitment to suppliers and businesses owned by First Nations Australians as well as 10,000 hours of participation from Aboriginal and Torres Strait Islander workforce. Trainees and apprentices will also be given about 15 per cent of work hours during the construction of the pipeline.
“We are excited to be delivering this pipeline, with the project marking our largest in the water sector to date. It marks a tremendous opportunity for our experienced team to continue working with our established supply chain in Central Queensland where we have proudly worked for almost 30 years,” BMD Group Chief Executive Officer Scott Power said.
Source: Queensland Government – Media Statements; BMD Constructions; McConnell Dowell; Gladstone Area Water Board; Gladstone Regional Council; Roads & Infrastructure Australia