The federal government has the power to intervene in the east coast gas market under the Australian Domestic Gas Security Mechanism (ADGSM), which enables King to redirect exports to plug local shortfalls. However, that would mean disrupting energy supplies to Australia’s major trade partners of Japan, China, Singapore and Korea. The ADGSM has never been triggered.

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In Victoria, where more than 2 million homes and businesses use gas – the most of any state – available gas supplies are expected to fall 48 per cent by 2028 due to shrinking production from ExxonMobil and Woodside’s Gippsland Basin joint venture in Bass Strait that exclusively supplies the local market.

Victorian Energy and Resources Minister Lily D’Ambrosio accused the Queensland gas exporters of “putting their export profits ahead of domestic supply needs”.

Gas, although it remains a widely used fuel in heating, cooking and power generation, is also a major source of greenhouse gas emissions that must be reduced to combat global warming.

Environmental advocates say there is enough time for shortfalls to be avoided if governments accelerate plans to reduce consumption by encouraging households to switch gas appliances to electric alternatives.

However, the energy industry and large industrial customers that rely on gas for energy or as a feedstock are increasingly on edge about the threat of shortfalls, and argue developing more production fields closer to the demand centres will be critical to ensuring gas can flow reliably and affordably for those who need it.

Representatives for major manufacturers who need gas for energy or as a raw material in their factories for making products such as bricks, steel, food and glass said policy settings in Victoria and NSW had discouraged new gas developments over the past decade.

“The new investment called for by AEMO is problematic to say the least,” said Energy Users Association of Australia chief Andrew Richards, who represents companies including Brickworks, BlueScope Steel and Incitec Pivot.

“The combination of delayed approvals and this uncertainty are the biggest issues facing the gas industry and its millions of customers.”