EnergySafe Magazine Autumn/Winter 2018, issue 50 | Page 14

14 Latest news A short history on the Victorian gas industry By Michael Weber, Data Analyst, Gas and Pipeline Strategy The history of Victoria’s gas industry is an interesting one with a number of twists and turns. It is about feast and famine. From humble beginnings, the production of gas from coal became a large enterprise for Melbourne and Victoria, but ended with the conversion to natural gas in the 1960s. Gas, as an energy source, first came to prominence as a way of providing superior lighting for Melbourne’s streets and shops. Street lighting up to the mid-1850s was minimal, with Melbourne residents relying on candles and oil lamps for illumination. The first steps towards using coal gas to provide lighting occurred in the 1840s, where two Melbourne shopkeepers installed small gas plants to illuminate their shops. This novelty attracted considerable attention and proved to be a great success for business. The improvement in illumination, as a result of gas lighting, gave rise to the formation of the City of Melbourne Gas and Coke Company in 1850. However, it was not until 1856 after the end of the Victorian gold rush and the return of workers from the gold fields that the company was able to provide gas illumination to Melbourne buildings. Gas street lighting was delayed to the following year after price negotiations between the Melbourne City Council and the Gas Co. were completed. As the advantages of gas lighting became apparent, the demand for supply increased. In 1861, a second supplier began operations and the original Melbourne gas company soon faced competition. By 1873, a third company entered the market and by 1878, the rival corporations amalgamated to form the Metropolitan Gas Company. As the city grew and suburbs spread, an ever-increasing demand for gas to service new estates drew by the public. Gas lighting remained the mainstay of the market; however, gas cookers, gas water heaters and gas space heaters grew in popularity in the mid to late 1800s. New gas companies were formed to service other areas and compete with the existing companies. By 1892, 50 gasworks were established in Victoria, a dozen within Melbourne and its immediate surroundings. This rapidly growing yet unregulated industry reigned in 1896, when the Victorian Parliament enacted the Electric Light and Power Act to provide regulation to an industry dealing in a hazardous field. Bitter competition for sales between gas companies forced gas prices down. This was favourable for customers, but forced some gas companies to merge to stay in business. Greater pressure to turn a profit caused further amalgamations and by 1900, the state’s three largest players were the Brighton Gas Company, the Metropolitan Gas Company and the Colonial Gas Association. By 1934, the gas industry become aware of the need to market its product and provide better appliances. A wider range of more appealing and efficient gas cookers, gas space heaters and gas water heaters appeared in modern gas showrooms. Gas became cheaper thanks to new technology. Yet, in country Victoria gas use was in decline as electricity cables extended throughout the State. Consequently, some country gasworks were forced to close. The gas and the electricity industries in Victoria relied on black coal supplied from New South Wales. This supply was unreliable, often disrupted by strikes on the docks and at the mines. During the 1940s, chronic coal shortages caused havoc in the Victorian gas industry causing Autumn/Winter gas rationing in Melbourne. When the supply of black coal interrupted gas making, Gippsland’s brown coal deposits were considered a substitute; however, some technical difficulties were hard to overcome. As a result, the Victorian gas industry remained subject to frequent coal shortages, causing gas rationing for Melbourne and many country centres. In 1951, the Gas and Fuel Corporation of Victoria (GFCV) was formed. This Corporation was an amalgamation of the Brighton Gas Company, the Metropolitan Gas Company and the Victorian State Government. The GFCV’s primary goal was to construct a brown coal gas plant at Morwell using the high pressure ‘Lurgi’ gasification process developed in Germany in the first half of the 20th century, and a long-distance, high-pressure gas pipeline from Morwell to Melbourne. While GFCV supplied the greater part of Melbourne with gas, privately owned gas companies still remained. Once the Morwell plant commenced producing gas in late 1956, other sources of cheap gas-making material such as waste gases from oil refineries surfaced. In the early 1960s, varieties of gases were blended in Melbourne to form ‘town gas’. Gasometers, correctly known as gas holders, were scattered across Melbourne’s suburban landscape. These large cylindrical structures, which dominated local skylines, stored gas at times of low demand for supply, into the surrounding network of gas mains when the demand for supply rose. Following the introduction of natural gas, these were decommissioned and removed. In 1965, commercial reserves of natural gas were discovered off the Victorian coast near Lakes Entrance. Natural gas, distributed by both GFCV and Colonial Gas Association (later to become Colonial Gas Holdings) arrived in March 1969. By the end of 1970, almost 1.3 million gas appliances in Melbourne converted to natural gas operation. As the conversion program proceeded, the gasworks around Melbourne closed down. Founded in 1858, the Geelong Gas Company was a private company that produced gas for use in homes and industries. It closed its doors in 1971 when Geelong converted to natural gas and was later purchased by GFCV. As the 1970s progressed, natural gas pipelines spread throughout the state. In 1973, with the purchase of Colonial Gas Holdings, 1840 1849 Gas used by Swanston Street baker 1840s Experimental gas was lighting in Melbourne shops 1850 City of Melbourne Gas and Co. 1856 Gas for shops and offices 1860 1878 Brighton Gas Co. 1880 1888 Electric lighting challenges gas lighting in the street 1896 Electric Light and Power Act 1900 – The beginning of gas regulation 1920 1878 Brighton Gas Co. 1940 1956 Morwell brown coal gasification and high pressure pipeline begin operations 1873 South Melbourne Gas Co. 1878 Metropolitan Gas Co. 1888 Colonial Gas Association (CGA) 1900 Fifty gasworks in Victoria 1918 New South Wales mining strike causes investigation into Latrobe Valley brown coal 1940s Severe gas rationing due to frequent coal shortages from NSW 1950 Gas and Fuel Corporation of Victoria (GFCV) 1960 1969 Natural gas distributed by GFCV and CGA 1970 Introduction of natural gas causes works to close down 1980 1965 Commercial reserves of natural gas found in Bass Strait 1969-1970 Gas appliances converted to use natural gas 1973 GFCV acquires Colonial Gas Association 1980s-1990s Decline of the GFCV 2000 Victorian Gas Industry Timeline 2020 1997 The Office of Gas Safety replaces the GFCV 2005 The Office of Gas Safety combines with the Office of the Chief Electrical Inspector to form Energy Safe Victoria