Efforts to improve the system were being held up by bureaucracy and the Federal Government was failing to provide support or direction.

“Over the past 12 months energy market reform has turned into a farce,” he said.

“Australia’s Ministerial Council on Energy (MCE) process has clearly reached a crisis point, characterised by a policy paralysis on virtually all of the key issues.

Infrastructure investment will remain under threat unless very clear guidance is issued by Ministers on how regulators will be required to perform their duties.”

Beasley said regulatory problems were partly responsible for delays in completing the Dampier to Bunbury pipeline in Western Australia. Bureaucratic headaches could also force a scaledown in the proposed $US3.5 billion ($4.7 billion) Papua New Guinea to Queensland pipeline, he warned.

“Investment will remain under threat until very clear guidance is issued by ministers on how regulators will be required to perform their duties,” Beasley said.

“If governments are genuine in their desire to ensure that critical infrastructure protection is addressed, they must take action which reflects the true risks faced by the industry concerned.”

Beasley said if governments removed barriers to investment this would encourage greater connection and integration of Australia’s pipeline system, improving access to gas reserves.

APIA also wants governments to work with the pipeline industry to ensure greater protection of pipelines against third party damage.

“This remains by far the major security issue facing Australia’s pipeline industry,” Beasley said.

The association says 80 per cent of the damage done to gas and oil infrastructure is by people and organisations that accidentally damage pipelines while digging.