Speaking at the Australian Gas Association Convention in Sydney, Mr Lauer said the current economic regulatory environment is stifling pipeline investment.

He challenged gas users attending the AGA Convention to abandon their short-term objectives for natural gas supply and to recognise the need for gas pipeline infrastructure to meet Australia's growing demand for natural gas.

"Current behaviour is placing at risk greenhouse, and other environmental benefits, which will flow from the increased use of natural gas," he said. "This has allowed incumbent customers to pursue short-term and self-interested objectives at the expense of investment and infrastructure development."

He added that Australia will get the gas pipeline industry it deserves. "At the moment, we are heading toward a return to government ownership and exploitation of critical pipeline infrastructure, increased control of the market by our monopoly gas producers and pipelines, which are both user built and controlled," Mr Lauer said. "If these are the fruits of competition policy reform, the entire process has failed."