The Asia-Pacific Gas Market Growth Project will examine ways to increase the use of gas within the region, to improve energy security, reduce air pollution, reduce greenhouse gas emissions and enhance economic growth.

Australian Petroleum Production & Exploration Association (APPEA) chief executive Belinda Robinson said the project would take account of the environmental benefits of natural gas and Australia's potential and strategic strength in clean natural gas.

"Our gas is a relatively low cost, low emissions fuel of the future," she said.

"The Australian industry alone could help avoid 180 million tonnes of global greenhouse gas emissions per year by 2017 if it met its targets for LNG and domestic gas - that is equivalent to 25 percent of forecast Australian emissions in 2017 or taking 36 million cars off the road."

Robinson said Australia's vast gas resources in offshore and onshore areas make Australia well placed to expand its role as one of the major energy suppliers to the wider Asia-Pacific region.

The project would be conducted over the next year and enable stakeholders in all seven APP partner countries to examine the policy and regulatory environment for natural gas, and consider ways to encourage gas utilisation in the region.

The project will be conducted by Pricewaterhouse Coopers.