Acting Prime Minister Julie Bishop says a gas pipeline from Western Australia may ease some of the challenges facing the east coast.
But WA Treasurer Ben Wyatt is adamant it must also be to the benefit of his state through the GST or other revenue.
The federal government is in the initial stages of a study into whether a gas pipeline from Western Australia to the east coast is viable.
The findings will inform a full feasibility study to construct a natural gas pipeline to provide additional supplies and increase competition in the east coast gas market.
Ms Bishop says her home state has an abundance of gas and doesn't face the same challenges in terms of supply.
"So an obvious answer may well be transferring gas from Western Australia to the east coast," she told reporters in Perth on Monday.
"But of course, it's early days. We'll undertake a feasibility study and see if it stacks up."
Mr Wyatt said a west-east pipeline is nothing new, but previous comments by the premier have made it clear this is not a separate issue from the state's GST revenue concerns.
"I'm not particularly minded to be participating in any cooperative way to try and help the east coast out of an energy problem that they've created due to their own policy failures," Mr Wyatt told Perth's 6PR radio.
"But I'll make it crystal clear, there will have to be some benefit to Western Australia."
The pre-feasibility study will be conducted by energy policy experts ACIL Allen and engineer GHD.
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