A recent report by the Australian Energy Markets Operator says that the massive expansion of Queensland ports fails to allow for increased gas demands in Australia, and could lead to a domestic shortage.

A series of gas export projects over the next few years will leave locals wanting, the group which manages the Australian energy market said.

But the group says the gap may be filled if concerns over the future of coal seam gas mining in NSW and Victoria can be ended.

The extra exports will see up to 250 terrajoules a day of gas leaving Queensland, and about 50 to 100 terrajoules of gas redirected from NSW to overseas avenues by 2019.

The Australian Energy Markets Operator says upgrading pipelines to enable more gas to travel from Bass Strait to NSW could help, as would a project to tap gas locked in the state’s coal seams.

Similarly, the report says gas resources in the Otway Basin off Victoria's west coast will be exhausted in a around ten years, which will put further pressure on supplies in the future.

AEMO says domestic demand is set to grow at just under one per cent a year, rising from 620 petajoules to around 750 petajoules per annum by 2033.

The report goes on to warn that a shortfall of between 50 and 100 terrajoules will hit NSW during winter peak demand from 2018.

The group says that efforts must be made to plug the gap before residents are caught short.

Suggestions include creating new supplies from NSW’s Cooper Basin piped from Moomba, in South Australia's north, or by upgrading the Eastern Gas Pipeline from Victoria. Establishing gas storage in Newcastle and tapping gas in the Gloucester and Gunnedah basins would increase supplies too, the report noted.