Construction giant Leighton (ASX: LEI) says its subsidiary Thiess Pty Ltd has been awarded a major coal seam gas upstream infrastructure contract in Queensland.

The landmark contract with QGC has a value of approximately $136 million for early works projects near the centres of Miles and Chinchilla in the Surat Basin.

Thiess will install field compressor stations, HDPE gathering pipelines, intermediate pressure gas trunklines, water storage ponds and complete site preparation for additional compressor stations. Work will begin this month and is scheduled for completion in March 2012.

Managing Director David Saxelby said the contract is a major milestone for Thiess.

"It secures Thiess' presence in the high growth LNG sector," he said.

Manager Resources & LNG, Grant Fraser acknowledged the strength of Thiess' submission which stood out against tough competition.

"We addressed key client issues including innovation, community relations and use of local suppliers and subcontractors," Mr Fraser said.

Thiess has a long and successful association with QGC and was formerly a shareholder.