On Tuesday, Australia Pacific LNG Pty Limited received federal environmental approval for its $35 billion coal seam gas (CSG) to liquefied natural gas (LNG) project.

Australia Pacific LNG is a 50:50 incorporated joint venture between Origin and ConocoPhillips.

The project involves the development of Australia Pacific LNG's CSG resources in the Surat and Bowen basins; building a 450km transmission pipeline; and construction of a multi-train LNG facility on Curtis Island, near Gladstone.

The approval of the project follows approval by the Queensland Coordinator-General in November 2010, which imposed a set of environmental and social conditions on the project before it can proceed.

Treasurer and Minister for State Development Andrew Fraser said the conditions the Commonwealth imposed on the project largely mirror those of the state.

"The next step includes applications for specific environmental authorities and various other planning and development approvals at state and local government level," Mr Fraser said.

Tuesday's approval now means three CSG-LNG project proposals in Queensland worth a combined $66 billion have now cleared State and Commonwealth approval processes, and include the $16b Gladstone LNG project backed by Santos, PETRONAS, Total and KOGAS; and the $15b Queensland Curtis LNG project (BG Group and Queensland Gas Company).