Updated April 27, 2017 17:35:10

Photo: Ms Palaszczuk wants the Prime Minister to call a COAG meeting about a national energy policy. (ABC News: Patrick Williams)

Queensland Premier Annastacia Palaszczuk has slammed the Prime Minister's intervention in the gas market, accusing him of "stealing" the state's royalties and "lacking the courage" to formulate a national energy policy.

The Federal Government will impose export restrictions on gas that could force producers to boost supply for domestic users before they are allowed to send gas offshore.

Ms Palaszczuk said Malcolm Turnbull's move was overdue and misguided.

"The Prime Minister admitted today that there needs to be more domestic gas on the market. We have known that for ages," she said.

"What does the Prime Minister want to do? He wants to come in and steal our royalties. Well he can forget that."

Although Queensland had set aside a small pocket of future gas production for local use, Ms Palaszczuk said restricting current gas exports would deter more development of the industry.

These giant tankers carrying Australian gas to Asia are the reason why domestic prices will stay high, writes Michael Janda.

Instead she said the Northern Australia Infrastructure Facility should be used to build gas pipelines from the Northern Territory via Queensland to the southern states.

"That's the answer," Ms Palaszczuk said.

"It's about time that the Prime Minister had the guts to call a COAG meeting to talk about a national energy policy.

"I am sick and tired of a Prime Minister that lacks leadership, lacks understanding when it comes to energy in this country and is too afraid to sit down with myself, Daniel Andrews, Jay Weatherill [and] all the other Premiers."

Topics: oil-and-gas, industry, business-economics-and-finance, states-and-territories, government-and-politics, federal---state-issues, qld

First posted April 27, 2017 15:35:45