“Australia’s enormous gas reserves are a strategic asset, offering huge opportunities in an environment of growing demand for energy, both internationally and domestically,” Evans said in launching the party’s energy policy last week.

“Securing adequate supplies of natural gas will be important over the next decade. With its competitive emissions profile, natural gas could help to meet our growing energy needs as Australia makes the transition to a more carbon constrained economy.”

The West Australian senator said the Rudd Government will:

• Encourage the development of the gas industry to open up additional supply for export and domestic use;

• Support the increased use of gas as a transitional fuel as Australia moves to a more carbon-constrained economy;

• Encourage a greater number of domestic gas producers to supply the market including those sourcing their gas from coal seams;

• Include projections of future gas supply and demand in a regular National Energy Security;

• Assessment to better inform industry and the energy sector about future gas use; and

• Encourage the development of gas-to-liquids projects to help address Australia’s declining production of petroleum liquids.

The new Government has also committed to encouraging intensified petroleum and other resources exploration and the development of new exploration science and technology.

It would also promote investment in exploration by allowing the selective use of flow through share schemes for smaller operators in the petroleum and mineral exploration industries, something many industry players have been seeking for years

But many in the industry would be concerned by Evans’ commitment to “examine options for linking the vast gas reserves in northwest Australia with the eastern States”.

With gas prices in the west far higher than those on the east coast, it is time to bury this pipedream.

Overall, the reaction of industry bodies to the Rudd Government’s energy policy has been positive.

The ALP’s formal endorsement of the role that natural gas will play in Australia’s future energy generation commitments won plaudits from the Australian Petroleum Production and Exploration Association and the Australian Pipeline Industry Association.

“The ALP’s recognition of “the vital role” of Australia’s enormous natural gas endowments in offering huge opportunities in an environment of growing demand for cleaner energy, both internationally and domestically, is a particularly welcome development,” APPEA chief executive Belinda Robinson said.

But she cautioned there was a need to put some “meat on the bones”.

“The Australian natural gas industry will be particularly interested in how a Labor Government would realise the full potential of natural gas in meeting its policy objective for assisting Australia move to a much less greenhouse intensive future,” she said.

“We would also be interested in the measures that might be considered for encouraging an intensified oil and gas exploration effort, particularly in frontier areas.”

APIA chief executive Cheryl Cartwright said her organisation had sought recognition by the nation’s leaders that natural gas will be an essential fuel for energy generation as Australia moves to reduce greenhouse gas emissions.

She welcomed Labour’s positive stance on gas but cautioned the ALP against the temptation to increase regulation of the natural gas market.

“This industry is working closely with government officials to develop an appropriate gas market and reduce the impact of intrusive regulatory practices,” she said.

“Gas transmission pipelines are privately owned and operated and do not rely on government funding to operate or expand, but appropriate economic policies need to be in place in order to encourage investment in future development.”