JOHANNESBURG (miningweekly.com) – The Australian Pipeline Industry Association (APIA) has called for greater policy support for the natural gas sector to ensure the long-term future of the industry.

APIA, which represents companies involved in national gas transportation in Australia, warned of a supply shortfall when the Queensland liquefied natural gas (LNG) export contracts kick in and said on Friday that the country had to afford natural gas similar policy support as renewable energy.

APIA CE Cheryl Cartwright said that much had been written about the domestic supply squeeze when the plethora of Australia-sourced coal seam gas and LNG contracts came on line in the next two years. “Adjusting domestic market structures will not address any supply shortfall, the only answer is to access broader supply from as many sources as possible, as soon as possible”.

In a position paper, the industry body proposed the establishment of a technology-neutral energy investment policy, allowing renewables, clean coal, gas and any low-emission technologies to compete for investment funds.

“This would not be in the form of grants, but rather a form of coinvestment on the basis of competitive bidding,” Cartwright said.

APIA also proposed a technology neutral electricity-sector emissions, intensity-based carbon reduction scheme.

Cartwright said that, rather than “picking winners” the policy would allow all technologies, including gas, to compete for funding on the basis of the economic reduction of emissions.

She called for an indication by government of commitment to natural gas, which APIA believed would assist in providing a conducive investment environment for further gas development.

“Such policies would indicate to investors in the supply and generation sectors that there is a future for natural gas in Australia. With such long lead times required for this investment, these announcements would help to secure our environmental and energy security future,” commented Cartwright.