State Development Minister Peter Ryan says any future coal seam gas industry is likely to be years away in Victoria.
The restructure of government departments puts energy and resources into the new department of State Development, Business and Innovation.
Mr Ryan will now oversee the state's coal allocations and says he will be making announcements about brown coal development in the coming weeks and months.
He says although coal seam exploration licences have been issued in Victoria, it will be a long time before it becomes a viable industry.
"We are taking an enormous amount of time and effort and care about the prospect of the development of any such industry, if indeed it does get off the ground at all," he said.
He says we are literally years away from any stage of productive capacity in Victoria.
"We are not going to advance this industry until we are satisfied that we are able to do it, if at all, in a manner that is appropriate to the needs of all Victorians," he said.
