The peak body was reacting to the announcement by resources minister Dr Anthony Lynham that a new gas supply and demand action plan will be released early next year.

Terms of reference have been released to government and industry leaders ahead of consultation on an issues paper due out later this year.

“This action plan will be an overarching strategy to maximise exploration, drive development, keep gas costs down and get maximum economic and job benefit for Queensland,” Dr Lynham said.

“The eastern Australian gas market is undergoing a period of rapid growth and structural transformation following the commencement of gas exports to the Asia-Pacific market.

“The Palaszczuk government needs to take the lead on the gas-related issues that will affect our households, our businesses, our industries and our jobs growth.”

The GAP will aim to stimulate increased gas supply further, optimise the economic recovery of gas resources, and leverage and build on the commonwealth government’s various gas and energy initiatives.

“Global demand for Queensland gas – led by Asia – is increasing,” Dr Lynham said.

“By 2018, Queensland is expected to be the fourth largest LNG exporter globally and by the end of the decade Australia has the potential to be the world’s leading LNG exporter.”

“On the domestic front, natural gas demand on the Australian east coast is forecast to grow at a staggering 16.5% each year.

“The action plan will examine the full spectrum of gas demand, business and employment opportunities in Queensland beyond what’s already happening or in the pipeline with liquefied natural gas production at Gladstone,” he said.

The terms of reference will require the plan to focus on understanding Queensland's gas sector, identifying barriers to achieving least cost supply, and ensuring that markets have transparent market mechanisms so that now the state has gas exports it can capitalise on all possible demand opportunities both domestically and internationally.

Many of the state’s older CSG fields are in decline, but there remains upside in undeveloped coal seams, plus there is the potential for shale gas in the Cooper Basin, especially since gas developments in Victoria and New South Wales are effectively on hold.

Queensland’s only real domestic gas competition comes from South Australia.

APPEA chief operating officer – eastern Australia Paul Fennelly said the plan would be a winner for Queensland if it encourages the ongoing growth of an industry that is already delivering major benefits for the state.

“With commitment and determination we can achieve the right policy settings to ensure the natural gas industry continues to power the Queensland economy for decades to come,” Fennelly said.

“It is essential that the plan focus on policies that will substantially enhance the industry’s global competitiveness and encourage investment in new exploration and production.

“That means continuing to reject unworkable intervention policies, such as domestic gas reservation, that will deter investment and only create adverse economic outcomes in the longer term.”

Fennelly said the investment of more than $70 billion worth of new gas infrastructure in Queensland since 2010 would help Australia become the world’s leading liquefied natural gas exporter by in the next few years.

“With domestic and global demand for gas forecast to increase, Queensland can attract further investment and growth in the industry if we get the policy settings right,” he said.

The Queensland Resources Council said gas-fired growth was a perfect recipe for future Queensland jobs, both in the resources sector and downstream in manufacturing.

QRC CEO Michael Roche said Qld should be able to capitalize on the opportunities for the state to supply the gas frustrated customers in NSW and Victoria.

“In those states, their governments, paralysed by activists and the fear of criticism by media shock jocks, have absolutely failed to develop an onshore gas industry,” he said.

“QRC also expects the action plan to examine opportunities to source gas from the Northern Territory through Mount Isa to help unlock the mineral wealth of Queensland’s richest metals belt.

“Increased gas supply – be it from Queensland or even the Northern Territory – is good news for the state’s manufacturing sector, helping to ensure a future for making fertilisers and explosives here in Queensland.”

APPEA says Queensland’s petroleum and gas industry supported almost 145,000 jobs directly and indirectly last year and has production worth $1.9 billion.

The industry is forecast to generate $411 million in royalties for Queensland in 2015-16.