Australia has called for the development of new natural gas resources to ensure it is affordable and remain a major exporter, in the latest shift towards greater support for the fossil fuel.

On Thursday, the Australian government released a long-term framework, called the Future Gas Strategy, to identify the role of natural gas in the transition to clean energy, with the goal of achieving net zero emissions by 2050. The country has a A $72 billion ($47 billion) liquefied natural gas (LNG) export industry and its leaders believe it faces a domestic shortage as new projects stall due to onerous regulations.

Madeleine King, Australia's resources minister, said in a statement: "The strategy makes clear that gas will remain an important energy source to 2050 and beyond. Natural gas plays a vital role in supporting our economy. We need to keep exploring, investing and developing."

The new strategy has been warmly welcomed by the industry, with Australian Energy Producers chief executive Samantha McCulloch calling it a "clear sign of the continued role and importance of natural gas".

Australian Prime Minister Anthony Albanese's government was elected in May 2022 with a mandate to take tough action on climate change. Australia is replacing its aging coal-fired power generation units with renewable energy and has introduced fuel emission standards. The new gas strategy echoes major energy producers, including Chevron Corp and Shell PLC, who say the fuel is needed for the energy transition.

In an interview with the Australian Broadcasting Corporation, King said there are currently no alternatives to natural gas, including "processing of key minerals or some high-temperature manufacturing uses where we would like to be able to use hydrogen." But at the same time, you can't have wishful thinking that this could happen without a backup."

As part of that strategy, King has threatened to consider strengthening the "use it or lose it" clause in the Commonwealth's leasehold policy to encourage faster development of potential sites. Speaking at a press conference in Canberra on Thursday, McCulloch said the Australian market needed significant new investment to avoid shortages.

Australia exports almost all the gas it produces. Some of the biggest buyers, including Japan and South Korea, have expressed concern about future supplies, and King has visited both countries to assure them that all contracts will be honoured. Editor/Xu Shengpeng