A GLOBAL engineering firm has joined Australia Future Energy to help it progress its $1billion energy and ammonia project in Gladstone.

Montreal, Canada-based engineering and construction company SNC-Lavalin signed a pre-feasibility study with Australia Future Energy for the development of the Gladstone Energy and Ammonia Project in Gladstone.

Under the contract, the first of a three-phase agreement, SNC-Lavalin will provide engineering and support services to produce a pre-feasibility report comprised of detailed engineering process packages for civil, mechanical and electrical works, environmental assessment and project capital and operating costs.

The proposed project would convert 1.5 million tonnes of coal a year to produce ammonia, synthetic natural gas and electricity using above-ground coal gasification technology.

SNC-Lavalin Asia Pacific senior vice president Garry Ford said the company was delighted to support AFE in the development of the project.

"(We) look forward to building a long-term relationship with them, delivering what would be an Australian first, using above-ground coal gasification technology to produce ammonia in Queensland," he said.

"We have a great opportunity to demonstrate our engineering and delivery capabilities, combined with our extensive experience across clean power, oil and gas, mining and infrastructure from over 50 years of operations in Australia."

SNC-Lavalin has previously had contracts with Australian gas developments including the Chevron Australia-operated Gorgon Project, Ichthys Project Onshore LNG facilities for Inpex and the Queensland Curtis LNG project.

And this week public comment has opened on draft terms of reference for the project's environmental impact statement.

The proposed project is planned for Gladstone State Development Area land.