The Victorian Government has announced a moratorium on fracking for coal seam gas and unconventional gas reserves.
ABC News reports the moratorium will remain in place until national guidelines are established for the onshore industry.
The new guidelines are expected to be finalised by the end of the year, and the fracking ban is expected to have little impact on the development of coal seam gas in VIC.
There is currently no CSG production in VIC and no fracking has taken place.
Nevertheless the Australian Petroleum Production and Exploration Alliance told the Financial Review today VIC should look to QLD as a model for gas regulation.
It said NSW, which currently has a ban on fracking, has created "stalemate and uncertainty" for the industry.
The VIC Opposition is calling for the ban to go further, and most of the state's environmental movement still opposes the CSG industry.