Cartwright, who is Australian Pipeline Industry Association chief executive, said investment in long-distance gas transmission infrastructure was in danger of being discouraged because legislation was being drafted without adequate consultation.

“In order to provide energy security, the Australian Government must encourage investment in long-distance gas transmission pipelines. But in an effort to streamline the process, ministers have tended to introduce changes to the gas sector legislation that undermines these important and strategic business goals,” Cartwright said.

“With the current debate about renewable energy and the Prime Minister’s review of nuclear fuel possibilities underway, now is the time to be encouraging investment in the production and transmission of natural gas.”

Cartwright argued that natural gas was a sensible ‘transition’ fuel that was more greenhouse-friendly than coal but less expensive than renewable energy and so-called ‘clean coal’ technologies.

“Federal and State ministers must be careful to ensure that their claimed objective of imposing only ‘light-handed’ regulation on the gas industry is achieved because the detail of their policies can create more intrusiveness for business,” Cartwright said.

Meanwhile, Energy Networks Association CEO Andrew has told the Australian Financial Review that his organisation also wanted confirmation from government officials attending the energy and utility summit that they would reduce red tape constricting the industry.'

Blyth said light-handed regulation was needed "so that the power crisis that occurred in New Zealand recently doesn't happen here in Australia", the AFR reported.

Cartwright said federal and state energy ministers needed to take a firm stand on this issue.

“This is an important opportunity for the Australian Government to get regulation right in this critical industry, avoid further disadvantage to the gas transmission industry and achieve the investment in infrastructure needed for a secure energy future in which greenhouse gas emissions are lowered,” she said.