Gladstone's Mayor is urging the Queensland Government to release money from an investment trust that takes contributions from the gas industry.

The Gladstone Foundation was set up two years ago to help pay for new infrastructure in the rapidly growing central Queensland city.

It is overseen by the Public Trustee and has so far raised more than $13 million.

Gladstone Mayor Gail Sellers says now is the right time to crack open the kitty.

"We have made an approach to the Premier and have requested that the money be released," she said.

"Council has always looked at this being big projects and we would like that to be what it's all about and not smaller projects.

"I'm talking projects between at least minimum $2 million and up to $10 million."

Councillor Sellers says she wants the money spent on social infrastructure.

"My idea would be to use this money in the Philip Street precinct, which is the major social infrastructure development we're planning for the land in Philip Street," she said.

"That would include our neighbourhood centre, a youth centre and would also house a retirement village."

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