Prime Minister Malcolm Turnbull urged to secure natural gas for Australia as exports threaten jobs

Multinationals should be forced to renegotiate lucrative contracts that allow unrestricted gas exports in a bid to avert an energy security crisis, according to one of Australia's most powerful trade unions.

The Australian Workers Union (AWU) has written to Prime Minister Malcolm Turnbull urging him to "act decisively and rationally in the national interest" to ensure a portion of Australia's natural gas is quarantined for domestic use.

AWU national secretary Daniel Walton has warned Mr Turnbull the unrestricted export of Australian gas by the likes of Woodside, Chevron and AGL is driving up prices, closing business and destroying jobs.

"Australia finds itself in the bizarre situation where despite producing a record amount of gas, we are paying some of the world's highest prices at home," Mr Walton says in the letter to Mr Turnbull.

"Australians are paying more for our own gas than the prices we charge China, Japan and Korea."

The letter says some gas multinationals are looking to import gas in the face of escalating Australian prices, something Mr Walton describes as "high farce".

The warning to the Prime Minister comes a week after Bluescope Steel chief executive Paul O'Malley predicted an "energy catastrophe" if Australian industry did not have reliable access to gas power.

Research by economic forecasters BIS Shrapnel commissioned by the AWU suggests that without affordable and reliable gas, one in five heavy manufacturers will close by 2021 with the loss of 235,000 jobs.

Mr Walton says Mr Turnbull has the power to summon multinationals to Canberra for a sensible and respectful renegotiation of gas export contracts.

"I know there will be those that will cry 'sovereign risk' and claim that we must retain the exploitative and destructive contracts that have been signed," Mr Walton says in the letter.

"By sitting down with the foreign multinational corporations… you can secure a portion of natural gas for Australian use and ensure we avoid catastrophic consequences."

Australia's 'looming energy catastrophe'

BIS Shrapnel says concern about energy security has seen a range of companies delaying investment in Australia or investing elsewhere.

The research cites the case of Incetic Pivot which announced it would build a US$850 million ammonia plant in the United States rather than Australia because of energy concerns.

The AWU warning coincides with a survey from the Ai Group which says rising energy prices are exposing businesses to heightened risks that could see jobs go offshore.

Chief executive Innes Willox says the report confirms that energy prices are rising quickly across the national electricity markets and the gas market on Australia's east coast.

"Business and households are going to see severe increases in their costs. Wholesale electricity prices are roughly doubling. Wholesale gas prices are at least doubling and may well rise much further. Spot prices are becoming more volatile," Mr Willox said.

"This will worsen margin pressures for business, with some manufacturers questioning their ongoing viability as a result. Such businesses will be looking closely at options to move operations offshore, reduce their local workforces or both."

The report "Energy shock, No gas, no power, no future" describes the forecast price increases as "staggering" with electricity and gas increases costing consumers and business as much as $12 billion a year.

Like the AWU, the Ai Group is citing comments from Bluescope Steel about a looming energy catastrophe unless affordable and reliable supplies are secured.

Follow Peter Ryan on Twitter @peter_f_ryan and on his Main Street blog.