Tuesday, October 31, 2006

Australia's natural gas sector wants to know why it is not playing a greater role in the push to reduce greenhouse gas emissions.

The Federal Government is funding two research projects in Queensland to extract methane from coal, with any carbon dioxide emissions to be buried underground.

But the Australian Pipeline Industry Association has questioned the continued reliance on coal while renewable energy sources come on line.

Chief executive Cheryl Cartwright says there is enough known natural gas reserves in Australia to last 100 years and it would make better environmental sense to start using it.

"Instead of relying on coal fired generation in the immediate term and the medium term, we can start to reduce greenhouse gas emissions," she said.

"Certainly not to the level that renewable energy provides, which is almost zero but natural gas greenhouse emissions in energy generation are far lower than coal."

Federal Resources Minister Ian Macfarlane says coal will remain a feature of global energy generation for the next century.

Mr Macfarlane says Australia is leading the research into cleaner burning and emission technologies, and the natural gas sector should see itself as a part of that.

"They're promoting their side of the industry, the Government is promoting a broad mix, we need to make sure as we announce that mix we get it right," he said.

"Gas has its place but it has to be part of the mix."