The Queensland government this week announced nine new areas, totalling about 16,000 square kilometres, will be available for gas exploration.

Queensland Premier David Crisafulli claimed opening up the state for gas supply will put downward pressure on power prices.

The state's Minister for Natural Resources David Last said only two of tenders will be left for domestic supply demands at this stage, leaving about 15,000 square kilometres of the total tendered area without domestic mandates and available for export. 

However, an energy expert has said though the state government’s move may drive gas prices down, it is “not guaranteed".

Centre for Independent Studies director of energy research Aidan Morrison said it was “critical” to determine whether more or less gas ends up being contracted for export than what the newly earmarked areas produced.

“If they develop more gas in Queensland, but sign contracts to export even more gas than what they can produce and use the domestic market to top up what they develop... that pushes up domestic prices, which flow through to electricity costs,” Mr Morrison told SkyNews.com.au.

"However, there could be substantial downward pressure on prices even if some of the gas is exported, particularly if this export meets Santos' current shortfall in their own production. It all depends on the balance - ensuring more gas is produced than is contracted for export."

It comes as Resources Minister Madeline King outlined a review of Australian domestic gas supplies that would soon get underway at a conference in Brisbane earlier this week.

“I will say publicly what I have said privately to industry – the review we are about the undertake is an opportunity to achieve important reforms in the national gas system,” Ms King said in her speech.

Energy sector sources have now signalled they are getting ready for the federal government to launch a viability study into developing a gas reservation on the east coast, according to AFR.

A spokesperson for the Resources Minister told the masthead “the role of market bodies to ensure more gas is made available for Australians” will be looked at as part of the federal government's gas review.

“Queensland and Western Australia are our two biggest gas exporters and they both have state-based gas reservation schemes,” the spokesperson told AFR.

“Australia has a suite of mechanisms that ensure Australian homes and businesses have enough gas for heating, cooking and manufacturing.”

Meanwhile, the federal Labor government has this week approved a bid to extend the life of Australia’s largest gas plant until 2070.

Environment Minister Murray Watt announced on Wednesday a proposed decision to approve pushing out Woodside's North West Shelf gas project from its original deadline of 2030.