The emerging industry of liquefied natural gas (LNG) could potentially boost the carbon emissions reduction efforts in Australia yet existing government policies continue to dwarf that possibility.

This according to Santos Ltd chief executive David Knox, who bemoaned at the same time that the LNG industry still do not enjoy the support it deserves from the federal government as he stressed that "if we are serious about action on climate change we must address greenhouse emissions from power generation."

Speaking at the Australian Institute of Energy National Conference held at Adelaide on Monday, Mr Knox said that natural gas could provide the major link in effectively cutting down Australia's carbon emission.

However, he said that this would not happen until the present environmental policies were subjected to modifications that would enable the LNG industry to "fulfil its full potential in cutting carbon emissions and providing energy security in the current policy environment."

Mr Knox decried that while renewable energy has been monopolising political attention and the consequent financial support, the LNG sector is not getting any assistance at all despite efforts by the industry to provide alternative energy source through use of proven and advanced technology.

The LNG industry is not looking for financial handouts, Mr Knox clarified, but the effective and eventual implementation of carbon price, which he said should the initial and serious step in checking the deteriorating impact of climate change.

Such measure and support would not be wasted as Mr Knox cited that the LNG industry is gearing towards considerable growth, with potential expansion in the world market that currently absorbs a capacity of almost 250 million tonnes of output, of which Australia currently contributes 20 million tonnes.

Basing on projections made by Santos Ltd, Mr Knox said that more than 30 percent of overall global LNG production by 2025 could be delivered by projects being planned and conducted in Australia, clearly underscoring the significant potential of the local LNG industry and its emerging role as one of the major player in the world market.