Speaking today ahead of APIA's National Convention and Exhibition - being held in Darwin from 23-26 August - APIA Executive Director, Dr Allen Beasley, said the nation's natural gas industry was in its most dynamic state for decades.

"Darwin is set to emerge as a major new centre for Australia's gas transmission industry and is heading towards being a world scale producer of liquefied natural gas for world markets," Dr Beasley said.

"There is also every prospect of natural gas development for a range of new markets in the Northern Territory and elsewhere in Australia," he said.

"While the challenges to development are enormous, there is no doubt that gas transmission pipeline development will be an essential ingredient in the long term development of the Territory."

According to APIA there is already strong evidence of the growth that will occur in the years ahead, including the proposed development of a 1000 km pipeline to service Alcan's long term energy needs in Gove.

"Natural gas already plays a significant role in the Territory, with a 1500 km pipeline supplying natural gas from the Mereenie Gas Fields for power generation in Darwin," Dr Beasley said.

"Natural gas use in the Territory is forecast to increase more than six fold within the next 20 years," he said.

"This will lead to an increase in the Territory's share of Australia's use of natural gas from 2.3 percent at present to nearly 7 percent by 2020."

Against this background of unprecedented development activity and interest in Northern Australian gas markets, APIA will be holding its 35th Annual Conference and Exhibition "Pipelines - Supply, Demand and the Role of Pipelines" in Darwin from 23-26 August.

Over 300 delegates and exhibitors will gather to examine future development prospects around Australia which has already led to a doubling of Australia's gas transmission system to 20,000 km over the past decade.

"Australia's natural gas markets are set to more than double over the period to 2020, creating major opportunities for delivery of natural gas to the Territory and in the longer term to markets in Queensland, South Australia and south east Australia," Dr Beasley said.

"While the transmission pipeline industry faces major challenges in meeting this expected demand growth, it is determined to remain proactive in pursuing the development opportunities that will emerge and meet the needs of gas customers," he said.