Newcastle GasDock Company has put forward a proposal to build a liquefied natural gas terminal in the city's harbour.

The state government is considering the plan but has already labelled it as "Critical State Significant Infrastructure" (CSSI) - as they did with the Port Kembla plant.

A spokeswoman for Australian Industrial Energy, the team responsible for the Port Kembla plant, wasn't surprised that the state might have a second terminal.

READ MORE: East Corrimal man charged over $2.7 million fraud

"The Port Kembla gas terminal created the precedent and so it is hardly surprising the government would need to be even-handed in granting CSSI [status] for a very similar conceptual model," the spokeswoman said.

"We continue to believe that NSW needs new gas supplies and new gas suppliers. An LNG import terminal in a location close to customers - such as Port Kembla - can overcome the cost tyranny of distance presented by an overland pipeline."

The spokeswoman said AIE had actually considered Newcastle as a location for the terminal - as well as Port Botany - before opting for Port Kembla.

"Port Kembla was the preferred location due to its substantial advantages in terms of much closer proximity to major gas transport pipelines with a good geographic reach, proximity to potential customers and more favourable port configuration - among other benefits," she said.

"As such, AIE's plans for the project remain unchanged."

The consortium is actually looking to increase the amount of gas it brings into the port, having under-estimated the strength of the market for gas in winter.