The Victorian government has unleashed a storm of controversy over gas as a fuel source as it advised it would scrap its moratorium on onshore conventional gas from mid-2021, opening up the possibility for new supplies that could offset declines from the Bass Strait.

While manufacturers seized on the move as offering hope for more secure and competitive gas supplies, green groups blasted it as putting land and water resources at risk and undermining state targets on climate change. AGL Energy said the decision changed nothing about the need for LNG imports.