Scott Morrison's threat to intervene in the energy market by building a gas-fired power station and underwriting pipelines has sparked a backlash from gas and energy suppliers, who say it will distort the market and demonstrates once more the need for a settled energy policy.

The Prime Minister's multi-pronged gas strategy was welcomed by big gas users but sparked internal rumblings with Nationals Senator Matt Canavan arguing the government should build a coal-fired power station in the Hunter Valley, not gas.