Scott Morrison is prepared to forcefully intervene in the energy market by building a new gas-fired power station in the Hunter Valley in NSW if need be, and underwriting the construction of gas pipelines to feed a new national trading hub.

The new power station would replace the lost capacity caused by the closure of the Liddell power station if the private sector failed to "step up", while the hub would be established by expanding the small existing facility in Wallumbilla, Queensland.