Industry has slammed a Victorian government decision to widen a ban on coal seam gas development to all onshore gas, saying it will add to the looming crisis in the eastern states gas market.

Peter Dobney, head of energy and resources at packaging group Orora, said the company had “given up" on the Victorian and NSW governments and bought an option over yet-to-be-produced South Australian gas from Strike Energy. “We have no confidence in them getting anywhere in providing industry access to reasonably priced gas within the next two to three years when eastern Australian gas supplies will face extreme pressure due to liquefied natural gas exports," Mr Dobney told The Australian Financial Review.