PERTH (miningweekly.com) – The Australian gas industry on Tuesday welcomed the federal government’s release of the Energy Green Paper, saying it recognised the importance of natural gas.

Industry Minister Ian Macfarlane said the Energy Green Paper sets a framework for the development of a coherent and comprehensive blueprint that it would allow Australia to take full advantage of its natural strengths and consolidate its position as an energy superpower.

“Australia has world-class energy resources, and we must ensure that we have the right policy framework to use them to our full advantage, in an increasingly competitive global market,” Macfarlane said.

“The government is resetting industry policy in Australia to build on our areas of competitive strength. The energy sector is one of those strengths and the Energy Green Paper will identify the ways in which we can improve the framework surrounding our energy assets.”

The Green Paper was built around four key themes; attracting energy resources investment, electricity prices, building gas supply and improving market operation and security, innovation and energy productivity.

Macfarlane noted that whether it was through world firsts in floating liquefied natural gas technology, ensuring flexible, transparent domestic energy markets or connecting the Australian energy market in the most sophisticated way that added value to the economy, the government’s focus was on maximising the country’s competitive edge and natural strengths.

“This includes addressing questions about how to ensure Australia’s vast gas reserves are accessed to the benefit of local industry, consumers and export markets.”

The Australian Petroleum Production and Exploration Association (Appea) said that an improved energy policy framework, including a reform of Australia’s labour markets, would remove unnecessary barriers to continued investment in exploration and production and enable the industry to increase domestic gas supplies.

“Appea commends the focus in the Green Paper on addressing the issues that detract from Australia’s investment attractiveness. It is critical that the government’s final White Paper ensures Australia’s oil and gas companies are not disadvantaged against international competitors or against producers of other energy sources in Australia,” said CEO David Byers.

“Australia has more than enough natural gas to service both domestic and export markets for decades and this puts Australia in an enviable position to maintain long-term energy security.”

Australia’s gas transmission industry has welcomed the paper’s emphasis on competition and transparency across all gas markets to answer the eastern states’ gas supply challenge.

“Gas market reforms of recent years have delivered market developments such as the Short Trading Markets, transmission pipeline capacity trading and the Wallumbilla supply hub. Gas supply issues, availability and price, continue to be the main risks facing gas market participants,” said the Australian Pipeline Industry Association CEO Cheryl Cartwright.

“The gas transmission industry welcomes the Green Paper’s call for increased transparency and competitiveness across the whole gas chain and we look forward to working with policy makers to achieve this outcome.”

Submissions to the Green Paper will close on November 4, and will inform the development of the Energy White Paper outlining the government’s long-term energy policy.