The nation's five largest fracking companies are set to help measure the environmental impacts of fracking in the Northern Territory, presenting a "totally inappropriate" conflict of interest in the eyes of one thinktank.

Key points: An alliance made up of the CSIRO, government and gas companies will research and provide advice about the impacts of a fracking industry in the NT

An alliance made up of the CSIRO, government and gas companies will research and provide advice about the impacts of a fracking industry in the NT The Australia Institute says the inclusion of major gas giants presents a conflict of interest

The Australia Institute says the inclusion of major gas giants presents a conflict of interest The CSIRO says processes are in place to ensure research is impartial

Last week, the Northern Territory Government awarded a $450,000 grant to the Gas Industry Social and Environmental Research Alliance (GISERA) to deliver "independent and transparent advice on gas development in the Territory".

This research was among the 135 recommendations the NT Government accepted when it lifted a ban on fracking earlier this year.

On its website GISERA is described as a collaboration between the CSIRO, which is Australia's national scientific research agency, federal and state governments and industry.

But as these industry participants are gas giants — Australia Pacific LNG, Origin Energy, QGC, AGL and Santos — questions have been raised about just how independent its advice will be.

The Australia Institute's principle advisor Mark Ogge said its policy regarding conflict of interest was inadequate.

The Australia Institute's Mark Ogge believes the research should be carried out by universities. ( Supplied: Australia Institute )

He said researchers at Australian universities were "more than qualified" to undertake the research independently.

"It's a fundamental conflict of interest," Mr Ogge said.

"They stand to win or lose billions of dollars based on the research so it's really just completely inappropriate that those companies would be funding that research.

"The community wouldn't accept governments relying on the tobacco industry-funded research into the health impacts of smoking, or asbestos industry research into the impacts of asbestos."

'Established process' ensures impartial research

The CSIRO was the key organisation which advised the Government's fracking inquiry that the process could be done safely.

Damian Barrett, director of CSIRO's onshore gas research and GISERA, "flatly rejected" the questioning of GISERA's independence, and cited established processes to ensure research was impartial.

These processes included restrictions around voting rights for industry representatives, the publication of all peer-reviewed "public good" research and the denial of any company requests to alter, edit or respond to research reports written by CSIRO under GISERA.

"These are standard protocols CSIRO enters into in all of its major alliance arrangements," Dr Barrett said.

"They ensure the national science agency's independence."

The Territory Government also said it refuted the Australia Institute's claims.

It said its fracking inquiry recommended that the gas industry should contribute to the research needed before fracking can start.