The restart of the onshore conventional gas industry in Australia's gas-hungry state of Victoria began today following an enforced stoppage that has lasted for years.

In the past years the state government has conducted various investigations and has permanently banned the coalbed methane gas business and hydraulic fracturing.

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The state government says onshore conventional gas activity will not compromise Victoria’s environment or agricultural sector.

The association for the Australian petroleum industry, APPEA, said the lifting on restrictions meant Victoria might "once again become an energy powerhouse".

APPEA's Victoria Director Ashley Wells said the original ban on a proven, safe and highly regulated industry did not make sense and meant that Victorians have had to rely on other states to solve its gas supply issues.

“Victoria has abundant local onshore resources but for years has rather imported gas from other states. Incredibly, it has even considered importing it from overseas with the planned import terminal,” said Wells. “The cheapest gas available to Victorian homes and businesses is the gas they are standing on and lifting of the moratorium is a good first step to getting on and developing it."