Central Petroleum and Armour Energy have won the bidding for the next gas exploration acreage released by the Queensland government exclusively for domestic supply, indirectly throwing a lifeline to Incitec Pivot's Gibson Island fertiliser plant, which has forged a partnership with Central.

Incitec said on Thursday it will now exclusively negotiate with Central for gas supply from the new acreage, with the intention that some of the fuel will be used to feed Gibson Island. The fertilisers maker said it could provide up to $20 million to help prove up gas.