The Queensland Resources Council says federal approval of two giant coal seam gas projects in Queensland will create more than 12,000 jobs and generate billions of dollars.
The BG Group and a consortium involving Santos, Petronas and Total will pipe coal seam gas from the Surat and Bowen Basins to Gladstone in central Queensland.
There it will be converted to liquified natural gas and shipped overseas.
The projects received state approval earlier this year and the Federal Government confirmed them on Friday.
The Resources Council says it is a massive announcement.
Santos, which is the largest domestic gas producer in Australia, says the approval process has taken three years.
Federal Environment Minister Tony Burke says 300 conditions have been imposed on each of the two projects.
The ABC reports the companies will now decide whether the projects are still viable with the attached conditions.
Santos says it expects to make a final investment decision by the end of the year.
If they proceed, Queensland Premier Anna Bligh says production is expected to start in four to five years. The state will collect a royalty of 10%.
The Queensland Opposition also supports the two LNG projects.