Environment Minister Tony Burke imposed more than 300 conditions to protect ecological treasures such as the Great Barrier Reef as he gave the go-ahead to BG Group and the Gladstone Liquefied Natural Gas (GLNG) joint venture.

"After rigorous assessments that included public consultation and the advice of experts, I consider that these projects can go ahead without unacceptable impacts on matters protected under national environment law," Burke said.

BG is developing Curtis LNG and GLNG is a joint venture between Australia's Santos, Malaysia's Petronas and France's Total, in projects worth about 30 billion dollars (about 29 billion US).

The companies are set to make final investment decisions by the end of the year on the plants and export terminals at Gladstone on Australia's east coast, in the lower reaches of the Great Barrier Reef.

The companies are using pioneering technology to cool gas taken from underground coal seams into liquid and ship it abroad, mainly to Asia, adding a new dimension to Australia's burgeoning liquefied natural gas sector.

Australia, dubbed a potential "Middle East of gas", also has several separate projects in its west and north that will chill natural gas deposits into liquid for shipping.

The announcement boosts expectations for rival coal seam gas joint ventures between Origin Energy and ConocoPhillips, and Royal Dutch Shell and PetroChina, which are yet to apply for environmental approval.

Santos said GLNG will provide 5,000 jobs during construction and 1,000 when the plant is functional, with initial output of 7.2 million tonnes a year.

BG Group estimates 8.5 million tonnes a year from its project on Curtis Island, just off Gladstone, with production starting in 2014.

China's CNOOC has already agreed to buy 3.6 million tonnes of LNG from BG's Curtis plant, while GLNG has pledged to sell 1.5 million tonnes a year to Total and 3.5 million tonnes to Petronas.

LNG is gaining favour because it burns more cleanly than other fossil fuels, helping Asia's rising economies cut pollution.

However, concerns by Australian green groups and farmers were heightened this week when toxic chemicals were discovered in eight exploration wells.

Environmentalists were also appalled this year when a Chinese cargo ship ran aground in the Great Barrier Reef, gouging a three-kilometre (two-mile) scar in the coral.

Santos chief executive David Knox said the company was committed to implementing comprehensive environmental management plans.

"We look forward to working with the community and government to deliver our project," he said in a statement.

A BG Group spokesman said the company acknowledged the announcement and was reviewing the conditions.

-- Dow Jones Newswires contributed to this report --

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