Papua New Guinea Prime Minister Bill Skate and Queensland premier Peter Beattie signed a memorandum of understanding in Brisbane on Wednesday to speed up government approvals for the pipeline.

"The project still has to gain necessary permits and approvals from both governments, but the processes will be fast-tracked," Beattie said in a statement.

The memorandum was also signed by Skate and prime minister John Howard on behalf of the Australian Government in Canberra on Monday.

US-based Chevron Corp has proposed the A$4 billion pipeline which would run 2,600 kilometres from the PNG highlands to Gladstone.

But the project hinges on securing contracts with major gas users, including Comalco Ltd, which is still considering whether it will build an alumina refinery in Queensland or offshore.

Chevron hassigned a co-operation agreement with Comalco and has also signed a conditional pact with state-owned generator Stanwell Corp for a planned gas-fired plant.

But Stanwell is also debating if it will go ahead with the gas-fired plant in view of expansions planned by state-owned generators CS Energy and Tarong Energy.

Beattie said the gas pipeline project was vital for accelerating regional development throughout Queensland and creating employment.

"The agreement sends a strong message to investors and prospective users of the pipeline that the government are united behind the project," he said.