Jeremy Buckingham, a Green Party MP, took a dingy out on Queensland's Condamine River, about 220km west of Brisbane, and set the river on fire with a barbeque lighter.
The river is filled with methane from fracking, which the national government insists is safe.
Origin Energy, which operates wells in the region, said it was monitoring the bubbling.
"We're aware of concerns regarding bubbling of the Condamine River, in particular, recent videos demonstrating that this naturally occurring gas is flammable when ignited," the company said in a statement to the Australian Broadcasting Corporation.
"We understand that this can be worrying, however, the seeps pose no risk to the environment, or to public safety, providing people show common sense and act responsibly around them."
Australian politician sets river on fire to protest fracking
(via Naked Capitalism)
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