A Western Australian company says it is hoping to start construction later this year on the first liquefied natural gas plant for the Gladstone region on the central Queensland coast.

Liquefied Natural Gas Limited (LNG) has signed an agreement with Arrow Energy to take gas from the Bowen and Surat basins

Golar Limited has signed an agreement to buy all the gas produced at the plant.

LNG's managing director Maurice Brand says the plant will be built at Fisherman's Landing just north of Gladstone.

"Our project size is fairly modest, we're talking about two LNG trains of 1.5 million tonnes each," he said.

"There's a jetty there already that's under-utilised, there's a reclaimed site there already, so the overall approvals process is a lot quicker when you have all of that infrastructure in place."

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