The Greens have accused the CSG industry of abandoning its workers after Arrow Energy cut 250 jobs from its Queensland operations this week as it attempts to manage costs.
Senator Larissa Waters said the job losses come as a blow to the Gladstone region, as the proposed LNG facility looks to be on the backburner.
Waters said the CSG industry has had seen unsustainable rapid growth and made promises to Queenslander’s it can keep.
"What it shows is that the industry expanded so fast it was unsustainable for the workers as well as unsustainable for the Great Barrier Reef and sadly we've seen Gladstone's economy brought to its knees already with the tourism and fishing industry - now we've got the CSG industry abandoning its own workers," Waters said.
However with its owner Shell looking to make the $20 billion plan for an LNG facility on Curtis Island viable, analysts are doubtful the project will go ahead.
CQUniversity professor John Rolfe told the ABC the project would be the first Queensland casualty of a high-cost business environment.
"I would think that it's unlikely that they'll go ahead in the short-term," he said.
"It's certainly disappointing for Gladstone, in particular, because it does mean that we're going to see more of a boom and bust cycle again.
"We'll have all of these big projects suddenly come to an end of construction and not a lot to follow."