In launching a joint initiative with the Australian Petroleum Production and Exploration Association, Macfarlane backed industry plans for natural gas to provide up to 70% of all new electricity generating capacity as well as a doubling of gas as a feedstock for resource processing.

APIA chief executive Cheryl Cartwright said she welcomed Macfarlane’s commitment to a much-expanded natural gas market in Australia. But she warned that inappropriate regulation could hamper efficient construction of the pipelines needed to transmit gas and meet future demand.

“At present, the industry is building more pipelines, but under the current regulatory regime they are being constructed to meet specific, contracted capacity requirements rather than including extra capacity in the initial design,” Cartwright said.

“APIA looks forward to continuing to work closely with the Government to improve the regulatory regime and also increase the use, and therefore transportation, of natural gas – a less greenhouse intensive fuel [than coal] – in Australia.”