Scott Morrison says a $53 million government investment in the gas industry will bring down household bills and support the creation of at least 4,000 jobs.
The prime minister wants to increase exploration to find new gas reserves and will set state and territories higher targets to encourage them to produce more.
It comes after The Australian Energy Market Operator warned that southern states could suffer shortages from 2024 as several Victorian gas fields run out.
Scott Morrison (pictured) will aim to bring household gas bills down and support at least 4,000 jobs by investing $53million in Australia's gas industry this year
Plans will be drawn up to develop five key gas basins starting with the Beetaloo Basin in the Northern Territory and the North Bowen and Galilee Basin (pictured) in Queensland
Mr Morrison also wants to develop an Australian Gas Hub - where gas can be efficiently traded - at Wallumbilla in Queensland.
And he wants to set up code of conduct to help commercial and industrial buyers get fair prices when they buy gas from major suppliers.
Plans will be drawn up to develop five key gas basins starting with the Beetaloo Basin in the Northern Territory and the North Bowen and Galilee Basin in Queensland.
The government will also set aside $10.9million to invest in pipelines and other infrastructure under a National Gas Infrastructure Plan.
Mr Morrison will work with state governments to accelerate three critical projects – the Marinus Link, Project Energy Connect and VNI West interconnectors.
'These links will help put downward pressure on prices, shore up the reliability of our energy grid and create over 4,000 jobs,' the Prime Minister said.
'Our plan for Australia's energy future is squarely focused on bringing down prices, keeping the lights on and reducing our emissions and these interconnectors bring us a step closer to that reality.'
Mr Morrison added: 'We'll work with industry to deliver a gas hub for Australia that will ensure households and businesses enjoy the benefits of our abundant local gas while we hold our position as one of the top global liquefied natural gas (LNG) exporters.
'This is about making Australia's gas work for all Australians. Gas is a critical enabler of Australia's economy.
Mr Morrison also wants to develop an Australian Gas Hub - where gas can be efficiently traded - at Wallumbilla in Queensland. Pictured: The Galilee Basin in Queensland