A plan for the plant, known as the Newcastle Gas Storage Facility Project, is now on exhibition and subject to approval is expected to be completed by mid-2014.

To be built on Old Punt Road, the 30-hectare site would convert natural gas to liquefied natural gas and store two weeks supply for the greater Newcastle region.

A preliminary environmental assessment said the site would also support the use of coal seam gas resources being explored and planned for the Hunter and Gloucester regions.

Up to 300 jobs would be created during construction with 15 permanent positions once completed.

The land is owned by Tomago Aluminium and will house a natural gas liquefaction plant, storage tank, regassification units and road tanker loading bay.

A receiving station is also proposed for Hexham and a pipeline between the two will need to be constructed.

Two possible routes are being considered for the pipeline corridor.

Option one travels north east from the Tomago Road and Pacific Highway intersection, along the south side of the Pacific Highway. Option two will travel from the same corner but diverts through the Tomago industrial area.

Once completed the plant would be capable of converting up to 70,000 tonnes of gas a year with the majority being transferred through the pipeline system for the rest of the state with about 20 per cent moved by road.