The Age reported this week that the $1 billion Mortlake gas-fired plant would be delayed by several years, with Origin now prioritsing Spring Gully.

“A 1000-megawatt gas-fired power station and accompanying 78-kilometre pipeline proposed for Mortlake in western Victoria has been pushed to third on Origin's "to do" list even though most of the regulatory approvals have been obtained,” said the newspaper.

An Origin spokesman said the Mortlake project was "not dead" but the second Spring Gully project was likely to be built first.

He pointed to a commitment from Queensland Premier Peter Beattie whose strategy for tackling climate change includes an expansion of the state’s gas scheme.

Queensland currently requires electricity retailers to source 13% of their power from gas-fired plantss. By 2020, the percentage will rise to 18%, with 10% of power to come from renewable sources.

In contrast, Victoria has a renewable energy target but no gas target.