Dick wants the potential for cost recovery on the project to be thoroughly examined and has directed the Queensland Competition Authority to report back to him by November.

“The Authority should investigate and report on options for recovering the costs of the pipeline,” he states in a ministerial direction issued last week.

The Treasurer has told the authority to take into account certain objectives including recovery of capital and operating costs from all customers over the life of the pipeline,  maintaining affordable water prices for all customers and minimising the need for government contributions and subsidies.

A final decision on the long-awaited pipeline was meant to be made mid-year. Supporters of the project, first mooted in the mid-2000s, hope it can be built by 2025.

Gladstone currently relies on Awoonga Dam for its water supply, not a long term option for emerging industry because of its vulnerability to drought.

The 116km pipeline would transfer about 30,000 megalitres of water a year from the Lower Fitzroy River to the Gladstone Area Water Board’s network at Yarwun.

GAWB, in partnership with the Queensland Government, is looking at water security to support the significant, long-term industry in the area which contributes to local employment and the state’s economy.

“The Fitzroy to Gladstone Pipeline is a proposed option to address the water supply risk from Awoonga Dam, enabling water security for GAWB customers and, importantly, to provide water for the emerging hydrogen industry in the Gladstone region,” the board states in material promoting the pipeline.

Pre-construction activity began earlier this year but final approval has yet to be given. GAWB Chief Executive Officer Darren Barlow said there had been strong market interest in the project.

About 80 per cent of the Gladstone area’s water consumption is for industry.