Santos Chief Executive David Knox called on South Australia to adopt a low target by aiming for average emissions of under 0.4 tonnes of carbon dioxide per megawatt hour by 2020, which would encourage further partnership between the gas and renewable energy industries.

Mr Knox said that with Australia’s ‘abundant gas supply’, the cost of replacing South Australia’s ageing coal-fired power stations with new gas-fired power stations would be less than building new generation coal power stations, assuming a modest carbon price is set.

Santos is considering the feasibility of gas-fired power station projects in New South Wales similar to its Shaw River Power Station project in Victoria.

Santos spokesman Matthew Doman said that the company had previously spoken of the scope of exploration at its Gunnedah Basin coal seam gas prospects.

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“If we did [consider such a proposal in New South Wales], that would be important for domestic gas use in the state,” Mr Doman said.