The Hunter's peak business body has warned east coast gas shortages are putting jobs across the region at risk.
The Australian Competition and Consumer Commission's (ACCC) interim report into gas supply, released on Monday, noted that while Australia has "relatively abundant gas resources", most of it is produced for export.
It warns substantial volumes are required for the domestic market next year to avoid a shortfall.
"The outlook for 2023 is very concerning and is likely to place further upward pressure on prices, which could result in some commercial and industrial users no longer being able to operate," the report said.
Hunter Business chief executive Bob Hawes said the situation could lead to dire consequences in regional economies.
"There is a genuine risk of a destruction of industry and jobs if we don't secure supply and prevent significant price increases that will inevitably result with a supply shortfall," Mr Hawes said.
The ACCC has recommended that the government consider intervening in the market, by pulling what's known as the "gas trigger" to ensure there is enough supply.
"An increase in the cost of gas will not only put additional pressure on the coast of living as production costs increase, but also force business closures where costs cannot be passed on," Mr Hawes said.
"We're seeing evidence of this already in the region and Business Hunter is aware of businesses that through contract arrangements are having to make decisions on continuing to meet contract requirements and supply at a loss or call it a day for fear of compounding a loss situation. This should not be happening."
