QGC and its joint venture partners China National Offshore Oil Corporation and Tokyo Gas have announced a two-year, $1.7b development of natural gas tenements in the Surat Basin.
The venture, which is located near Wandoan, has been approved by the federal and state governments, and QGC's parent company BG Group.
The development, known as Charlie1, involves 300-400 wells, a large compression station and associated pipeline and facilities.
It will feed into the existing gas and water infrastructure at Woleebee Creek.
The works will help QGC meet the demand of domestic customers and the two-train Queensland Curtis LNG liquefaction plant on Curtis Island near Gladstone.
Leighton Contractors has been appointed the main works contractor in a deal worth $250m.
Managing Director Tony Nunan said this was an important investment in the future of QGC's operations and built on the success of the world-first production of liquefied natural gas from coal seams in the past year.
The QCLNG plant has delivered 62 cargoes since first LNG production in December 2014.
"This is a vote of confidence in the secure, long-term future of Queensland's natural gas industry, which will employ Queenslanders for many years to come," Mr Nunan said.
"The Charlie development will help to sustain the benefits of our investment in local communities and the state, including up to 1600 construction jobs and business opportunities during the two-year project."