PM meets with gas reps on proposed laws

A meeting between the federal government and the body representing gas companies has been described as "very productive" ahead of proposed laws to cap prices and bring down energy prices. 

Prime Minister Anthony Albanese, Treasurer Jim Chalmers and Resources Minister Madeleine King met with the Australian Petroleum Production and Exploration Association (APPEA) on Wednesday.

Parliament will be recalled on Thursday to debate the proposed laws which are expected to pass with the support of the Greens and independent senator David Pocock.

Along with a 12-month price cap on gas of $12 per gigajoule, the laws would also introduce a mandatory code of conduct for the gas market. 

Ms King said the price cap would help to "reset" the market and provide some stability.

Yet the head of petroleum exploration and production company Woodside Energy said the government's proposal would worsen existing issues. 

"The market is working and the government's interfering is actually causing significant disruption and significant uncertainty on both sides of the table," Woodside chief executive Meg O'Neill told ABC Radio.

"It's very disappointing for us to see the government ... without consultation, propose this very significant market intervention that will have long-lasting implications.

"Any price intervention is problematic because it distorts the market and so what it does is it sends a signal to customers and to producers that there's uncertainty."

Ms King said the government was not underestimating the seriousness of intervening in the market but was faced with an emergency situation. 

She said the meeting with gas company representatives was productive.

"The prime minister's door is always open to industry," she told Sky News.

"We will work with APPEA and other gas companies to address their concerns. I can't say we can address all of them but we are certainly taking their comments on board and trying to make a better solution." 

Ms King said there was mutual interest between the government and gas operators to find a solution to ensure businesses aren't crippled by high energy prices. 

The minister will meet with exporters on Thursday after the prime minister flagged the government was considering a national gas reservation policy. 

"It's a crisis situation and we've said all along everything remains on the table," Ms King said.

"A gas reservation policy nationally is a longer term proposition but we will look into it ... to improve this market." 

But Ms King said any such policy would be difficult to implement retrospectively and would have to apply to new gas projects.