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Some manufacturers in the state of Victoria have seen wholesale gas prices soar to $22 a gigajoule in February from $6. Thats ghastly and apocalyptic as far as the cost structures of energy intensive manufacturers are concerned, said Tennant Reed,an Ai policy adviser. Drilling Ban The most important market news of the day. Get our markets daily newsletter. Sign Up Turnbull hopes gathering together top energy executives may get more natural gas into the nations energy system. While South Australias Premier Jay Weatherill is towing a similar line on raising gas output, his plan directs utilities to act in the interests of the state, potentially in conflict with the national electricity market. While the move may ensure the state has a greater say over its power use, Frydenberg is concerned about the implications for the rest of the market. Going it alone created SAs problems and going it alone wont fix SAs problems, Frydenberg said. One barrier to greater gas production nationwide has been exploration bans implemented by Victoria and Northern Territory.Land management isnt a matter the federal government can intervene on and any easing of the drilling ban would need to be done at a state level, Resources Minister Matthew Canavan said at a briefing on Wednesday. A possible path forward for unlocking greater reserves may come from South Australias plan to offer farmers a direct share of royalties from drilling for gas on their land. Frydenberg said it was a welcome initiative which could be replicated across the nation to reduce wholesale gas prices.