Under the agreement, the NT and NSW governments will work together to accelerate and promote development of the potential east coast gas market-saving pipeline and the development of a national and competitive gas market.

The pipeline has been picking up momentum recently, with a meeting of the Council of Australian Governments unanimously lending its support to the project last month.

Discussions are ongoing concerning the route of the pipeline, with one option being to build it from Alice Springs to Moomba.

“The NSW government recognises the benefits a gas pipeline connecting the Northern Territory and eastern seaboard would have for consumers in NSW,” Baird said.

“We are actively exploring all possibilities to increase gas supply to our domestic consumers and this MOU is an important step in offering NSW government support to the process now underway.

“By establishing a national grid we can help secure our energy needs and put downward pressure on household bills.

“Without affordable and reliable gas supplies our manufacturers will struggle to compete and households will pay higher prices.”

Giles agreed, saying the pipeline would be a win for both states.

"The Territory government understands that time is of the essence and we are doing everything we can to get this project off the ground as quickly as possible,” Giles said.

"More than 100 people from all sectors of the gas industry turned out at an industry briefing in Alice Springs last week to hear more details about the project.

"Expressions of interest from the private sector for building and operating the pipeline open on November 13 and we are expecting strong interest," Giles said.