A $1 billion proposed gas pipeline will spell the end of coal seam gas in NSW, Greens MP Jeremy Buckingham says.
NSW and Northern Territory leaders formally endorsed the project in Sydney on Friday.
The pipeline could run from Alice Springs to Moomba or from Tennant Creek to Mt Isa, providing the missing link from the Northern Territory to Sydney, Melbourne and Brisbane.
"No investor in their right mind would put money into an unwanted and unnecessary coal seam gas industry, which has been rejected by the community when there's a prospect of this pipeline being built," Mr Buckingham said.
Premier Mike Baird insists the CSG industry has a future in NSW as long as it does not harm the environment.
The state government recently decided to extend by a year its freeze on new CSG exploration licences.
Mr Baird says the pipeline will bring much-needed gas to NSW and put downward pressure on energy prices for households.
The pipeline is expected to cost between $900 million to $1.3 billion and be operational by mid-2018.