“The decision by the Federal Government to extend financial incentives to encourage the take-up of alternative fuels such as LPG is welcomed, however the energy sector is keen to point out that LPG is not the only gas fuel option in town,” ENA chief executive Andrew Blyth said.

“Natural gas provides a realistic and economically effective alternative fuel solution, as well as being environmentally sustainable. Motorists can reduce their annual fuel bill by up to 50% each year through the use of natural gas.”

Blyth said the benefits of CNG as a transport fuel included reduced greenhouse emissions; lower fuel cost; reduced engine wear; and the ability to be used all vehicle classes.

“Australia has around 100 years of domestic natural gas reserves and a well-developed and secure natural gas distribution pipeline network,” he said.

A natural gas transport fuels taskforce would provide a good platform to examine the significant role natural gas can play as an alternate vehicle fuel source, he said.

But Australia also had to tackle the current barriers restricting the growth of CNG as an alternative fuel, according to Blyth.

With the gas refuelling infrastructure to enable vehicles to use CNG only its infancy, the Government had to subsidise and support the establishment of more extensive refuelling infrastructure and provide tax benefits to motorists to reduce take-up barriers, he argued.

“The key to ensuring natural gas plays a prominent role in Australia’s transport fuel mix is to provide the investment environment required by industry participants,” Blyth said.

“Around the world, natural gas is being widely adopted as a transportation fuel – with further practical support from the Federal Government, Australia will be well placed to embrace this clean fuel option and ensure enhanced energy diversity.

“Extending the alternative fuel conversion rebate to include natural gas today will go a long way in supporting alternative fuels and strengthening our energy security position in the future.”