The Australian Pipeline Industry Association (APIA) said it was encouraged by the Rudd Government’s recent acknowledgement of the economic and environmental benefits of natural gas as a fuel for the future.

“CoAG provides the Rudd Government with a genuine opportunity to reinforce its position on natural gas and not disadvantage the gas industry by introducing unrealistic renewable energy targets,” APIA chief executive, Cheryl Cartwright, said.

“Natural gas is the ideal transition fuel for electricity generation to achieve emissions targets sooner rather than later.”

.

According to APIA, combined gas cycle turbine technology produces half the greenhouse emissions of coal and uses about half the water used by coal-fired turbines.

In addition, gas-fired plants are significantly cheaper to build with a shorter construction period.

“It is important that the policy environment does not reduce efficient investment decisions, in the way that mandatory renewable energy targets can,” Cartwright said.