Government ministers have engaged Woodside in discussions about supplying LNG to Australia’s east coast as market prices spike.

Woodside has undertaken a $63 billion merger with BHP Petroleum, doubling its production and granting it a 50 per cent stake in the Bass Strait oil and pipeline gas which supplies natural gas to Tasmania.

The company is also planning on increasing gas supplies through a new import deal with Viva Energy.

Prime Minister Anthony Albanese says the government is engaging with the sector to see how it can alleviate pressure in the short term.

“(Resources Minister) Madeline King herself has been in contact with the big providers as well as Chris Bowen, the energy minister, was talking through with the sector (about) how we can alleviate the immediate real pressure on businesses and households,” he told the ABC.

Australians would be able to benefit from the export dollars from Woodside’s Scarborough gas project off the West Australian coast despite constrained domestic supply on the east coast, Mr Albanese says.

“We will continue to benefit from the export of our resources, the revenue of which goes in part to fund education and health and other services in our national economy.

“At the same time, Australia will of course change the energy mix we (and) can see that happening right now.”

The WA and federal government remain under pressure from the Greens, who are using their record showing at the federal election to push for an embargo on new gas and coal projects.

But Mr Albanese says while the cheapest form of new energy is renewables backed up by battery storage, gas will continue to play a role in the domestic energy mix as a “firming fuel”.

Further approvals of fossil fuel projects will be considered on their economic impact and a commercial analysis of the projects, Mr Albanese says.

“They’ll all be be judged on their merits,” he said.