SYDNEY, Feb. 28 (Xinhua) -- The Australian state of Queensland has given the all-clear for a 10-billion-Australian dollar (714 million U.S. dollars) resources project in central Queensland's gas-rich Surat Basin.

Arrow Energy's Surat Gas Project is the state's largest new resources project in eight years and has granted a total of 14 petroleum leases in a 2,500 square km area between the townships of Dalby and Wandoan.

Expected to produce around 5,000 petajoules of liquid natural gas (LNG) to market over 27 years, Queensland Premier Annastacia Palaszczuk said on Thursday, the development will also be a major windfall for local workers.

"This is the biggest resources project since 2011 when the LNG projects were sanctioned," she said.

"The Surat Gas Project will create up to 800 construction jobs and 200 ongoing operational jobs, as well as millions of dollars in business opportunities for local suppliers."

In order to qualify for approval from the state, Arrow Energy -- a subsidiary of PetroChina and Royal Dutch Shell -- has to met strict environmental, financial and Native Title requirements.

According to Queensland Mines Minister Dr Anthony Lynham, the company proposed to use nearby existing QGC infrastructure including processing facilities and pipelines to transport gas to domestic and export facilities.

"This approach has two major benefits. It will get gas to the market faster and it significantly reduces the project footprint and the potential impact on local communities and the environment," Lynham said.

With lingering concerns about domestic LNG supplies heightened in 2017, after Australia's national energy regulator warned the federal government that a "shortfall" was looming, the east coast of the country has moved quickly to boost its production.

Over the past two years, almost 25,000 square km of land have been released for gas exploration in Queensland with around one third of production set aside for the domestic market.

Construction on the Surat Basin Project is set to begin later this year with completion expected some time in 2020.