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Santos, Australia's third-largest oil and gas producer, on Monday released its submission to the federal government's white paper on energy.
Santos argued that natural gas should play a greater role in meeting Australia's future energy requirements.
But Santos indicated that the government's renewable energy target, which aims for 20 per cent of Australia's electricity supply be provided by renewables by 2020, would distort the energy market.
"Santos supports passage of the government's Carbon Pollution Reduction Scheme legislation, with one proviso, that the ability for natural gas to compete on a level playing field, whether in the domestic or export market, is preserved," Santos chief David Knox said in a statement.
The renewable energy target, which has bipartisan support, would mean some fuel types had an unfair advantage, the submission said.
"A level-playing field is not in the offering given," it said.
A Santos spokesman stressed the company had accepted a renewable energy target was going to be a reality, but said any future shifting of the goalposts would lead to uncertainty for gas producers.
"We just need what is proposed to be delivered," he said.
"If you want the benefits of natural gas ... the policy environment has to be preserved as it is articulated.
"Anything that goes beyond that, that will really start to impinge on the ability to deliver," he said.
The company said natural gas had a bridging role to play while the economy readied for advances in renewable energies.
Santos said gas offered an immediate way to transform baseload power generation away from high-carbon coal to low-carbon gas.
Natural gas could also play a key role in supplying the energy needs of China and India, reducing those countries' reliance on higher emission fuels, Santos said.
Investment in gas would underwrite significant economic activity, generating thousands of jobs, it said.
"Coal currently fuels over 80 per cent of Australia's power generation, a sector which in turn accounts for over a third of Australia's carbon emissions," Santos said.
"Gas-fired power generation results in 60 per cent less carbon emissions compared to coal, and does so using as little as one per cent of the amount of fresh water."
(AAP)
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