Gas pipeline major APA Group has backed the federal government's recently announced National Energy Guarantee, saying the scheme will increase the use of gas in Australia's energy mix.
APA managing director Mick McCormack told shareholders at the company's annual general meeting the new policy is a step in the right direction.
"I was pleased to see the Prime Minister's announcement regarding the NEG, which included gas as one of the ready-to-use and reliable sources of dispatchable energy that retailers can access to meet reliability and emissions guarantees," Mr McCormack said on Friday.
The Turnbull government earlier this month unveiled the NEG scheme, under which energy retailers will be required to meet standards mandated by national regulators on reliability and emissions.
Energy companies will need to guarantee both supply and emissions reduction targets in a subsidy-free market, with each retailer free to decide their mix of power to meet the mandated criteria.
Mr McCormack said a decade-long lack of energy policy planning and lack of co-operation among state and federal governments had resulted in Australians paying some of the highest energy prices in the world.
He said it was now necessary to have policy certainty from a national energy plan that has bipartisan support across all levels of government and all states.
If Australia is going to meet its global commitment of reducing emissions by 2030, more gas will be required along with more renewables to take over from coal, Mr McCormack said.
Earlier, outgoing chairman Leonard Bleasel reaffirmed full-year guidance for earnings to be between $1.475 billion to $1.510 billion, and said APA continued to see opportunities ahead for growth.
He also told shareholders the company has opened a small office in Houston, Texas in recent months as it considers opportunities outside Australia.
APA in August said it was looking at acquisition opportunities in the North American gas pipeline market, with many US pipeline assets now in need of recapitalisation.
By 1233 AEDT, APA Group securities were up 0.5 per cent at $8.515 in a firm Australian market.
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