Mr Clark said at the Energy 21C Conference in Melbourne that Australia has more than a century of known gas reserves that could become a mainstream clean fuel.

He said “Australia is well placed to become one of the world’s biggest producers of natural gas. Across the country, natural gas is delivered widely by pipeline, ships and trucks, and it is easily and safely stored.

“Yet we continue to rely overwhelmingly on petroleum for transport while resisting the overwhelming truth that natural gas is a cost competitive alternative fuel offering real benefits in carbon emission reduction and improved air quality in our cities.”

Mr Clark said there are currently about 10 million natural gas-powered vehicles on roads around the world.

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“Natural gas must become a mainstream fuel in this country,” he said.

“Unlike oil, the plentiful supply of natural gas in Australia helps maintain a low, stable price making it an ideal fuel for transport.

“Yet we continue to get into the global queue to import around $18 billion worth of petroleum each year, based on current oil prices.

“If you just take a tailpipe view of this issue, we have the opportunity to significantly reduce greenhouse gas emissions and other pollutants generated by petroleum fuels.

“We must recognise the increasing costs and environmental risks of petroleum importation and change national policy to encourage the use of an indigenous energy resource that can contribute to innovation in Australia’s manufacturing industry.”