Agency
Gas and Fuel Corporation
VA 1040
1951 - 1995
Agency names
Officially known as: Gas and Fuel Corporation
Establishment
The Gas and Fuel Corporation (GFCV) was established by the Gas and Fuel Act 1950 (No.5507) and came into operation on 1 January 1951 (Government Gazette 1040, Wednesday December 13, 1950). The Act consolidated an agreement between the Metropolitan Gas Company, the Brighton Gas Company Limited and the State of Victoria to establish, constitute and incorporate a Public Authority. The Gas and Fuel Corporation was a public authority of the State owned jointly by the Government and share holders.
Powers and Functions
During the first half of 1951, while the GFCV organisation was developed and key appointments were being made, the two existing gas companies continued their normal operations under the direction of the new Board. Commercial operations of the GFCV began commenced on 1 July 1951. The Metropolitan and Brighton Gas Companies were then officially wound up.
For the first 10 years the GFCV focused on three main developments:
1) Construction and operation of the Lurgi Gas Plant at Morwell:
The Lurgi process used briquettes made from dried and compressed brown coal purchased from the State Electricity Commission of Victoria (VA 1002) to manufacture 'town gas', which was then transmitted by pipeline to the city-gate at Dandenong. The plant was progressively commissioned during 1956 and was officially opened by the Duke of Edinburgh on 5 December 1956. The plant was closed in November 1969 following the introduction of natural gas.
2) Use of Refinery Gas:
In 1954, work commenced on construction of a pipeline from the Vacuum Oil Company refinery at Altona to the West Melbourne Gasworks. It commenced operation in May 1955 and provided the GFCV with 2 million cubic feet of refinery gas per day. In 1956 another pipeline connected West Melbourne with Highett Gasworks to transmit refinery gas to that site. In 1955 GFCV commenced negotiations with the Shell Oil Company of Australia Limited to purchase Liquefied Petroleum Gas (LPG) from their Geelong Refinery. At the end of 1957 GFCV established a new Division under the brand name Heatane to market LPG. Land was purchased at Altona for a storage and bottling plant, and agents were appointed throughout Victoria. The first arrangement included a joint sales agreement with the Gas Supply Company and Geelong Gas Company, both publicly listed companies. In 1960 the Tempered Liquefied Petroleum Gas (TLPG) plant commenced supply to country towns, replacing the gasworks, which due to their age were no longer economical. In 1963 the first of the Onia-Gegi oil gas plants was commissioned at the West Melbourne Works. The refrigerated LPG storage plant at Derrimut was opened and connected into the production system via a 15-mile high-pressure main to the West Melbourne Works.
3. Gas Industry Consolidation:
Gas Industry consolidation was a provision of the Gas and Fuel Act 1950 (No. 5507) and gave the GFCV rights of acquisition over other gas undertakings in Victoria. During the early 1950s many Victorian gas undertakings approached the GFCV, seeking to be acquired. The Corporation did not see it as desirable to take over any other gas undertakings at that point. Instead they provided technical advice on request, sometimes at a modest charge, or an alternative buyer was sometimes suggested.
Natural Gas
In 1965 ESSO Gippsland Shelf Well No. 1 was reported by ESSO Exploration as having a flow of 3 million cubic feet of gas per day. Negotiations for purchasing the gas commenced between GFCV and ESSO/BHP. The transmission of the gas was a major issue due to the size of the engineering and construction involved in a pipeline from Bass Strait to Melbourne. The Victorian Pipelines Commission Act 1966 (No. 7477) authorised the VPC to construct and operate pipelines, buy and sell hydrocarbons, acquire by agreement any existing pipelines and act as a common carrier of hydrocarbons. The Victorian Pipelines Commission was constituted in February 1967 and the pipeline was commissioned in March 1969. While the pipeline was under construction GFCV and Colonial Gas Supply were preparing for the task of converting appliances to use natural gas. There were an estimated 440,000 consumers with approximately 1 million appliances in the GFCV's area of supply, and 75,000 consumers with 170,000 appliances in the Colonial Gas Association's two areas of supply. The conversion process was completed in December 1970. As conversion of appliances occurred throughout the suburbs, section by section, natural gas replaced manufactured gas in the pipelines and the closure of the gasworks began. Highett gasworks ceased operation in August 1969, Lurgi Gas Plant in November 1969 and West Melbourne in December 1970. Colonial Gas stopped production at Box Hill gasworks in November 1969 and Footscray gasworks in March 1970. The Gas and Fuel Corporation (Pipelines) Act 1971 (No. 8122) abolished the VPC and transferred its powers and functions to GFCV on 1 July 1971.
Natural gas pipelines reached Geelong and Ballarat in 1971, and in June 1971 GFCV took over the Geelong Gas Company. On 1 April 1973 GFCV and Colonial Gas Holdings brokered a mutually acceptable offer for the GFCV to purchase Colonial's assets, which included gasworks at Mount Gambier, Benalla, Shepparton, Wangaratta, Seymour and Horsham. In 1974 GFCV assessed the viability of a natural gas pipeline to Wodonga and an agreement was reached with Boral to purchase the Albury Gas Company Limited. Natural gas reached Wodonga in April 1977 and by the end of 1977 appliances in Seymour, Benalla, Wangaratta and Shepparton were converted to use natural gas.
The Longford to Dandenong pipeline held sufficient gas supply for Melbourne for five days. As gas sales increased, the reserve in the pipeline shrank. GFCV decided to construct a Liquefied Natural Gas storage facility at Dandenong. They proceeded with the project in conjunction with Commonwealth Industrial Gases Limited (CIG). One sixth of the storage tank was reserved for CIG use. Operations commenced in 1980.
In 1977 GFCV entered into the home insulation market, offering incentives for those prepared to share the responsibility of conserving fossil fuel reserves. They also opened the Energy Management Centre for the purposes of education. While it was hoped that conservation measures would extend the economic life of Bass Strait gas fields beyond 2005, GFCV's main concern was that forecast peak load would exceed supply in the 1990s. In 1978 Gas and Fuel Exploration NL was incorporated and in possession of Permit Area VIC/P11 to search for natural gas with Beach Petroleum NL. In 1985 the one millionth consumer was connected.
Dissolution
In 1991, the Government commissioned a study aimed at improving the performance of the Gas and Fuel Corporation. As a result of this study (Cresap, October 1991, Strategic and Organisational Review Final Report for the Gas and Fuel Corporation of Victoria) the Gas and Fuel Corporation was restructured into discrete business units such as corporate, transmission, distribution, retail and Heatane Gas.
Under the Gas Industry Act 1994 (No. 112 of 1994), the rights and liabilities of the GFCV were distributed among three divisions - gas distributor and retail companies managed by GASCOR, the Gas Transmission Corporation (GTC), later renamed Transmission Pipelines Australia, and independent market operator Vencorp. GASCOR was established on 20 December 1994 and continued to trade as the Gas and Fuel. They operated the low-pressure distribution assets, the gas retail function, consulting services and the Gasmart appliance retail business. GTC was the manager of the main high-pressure gas pipelines. Under Schedule 3 of the Act certain rights and liabilities remained with GFCV, and when it was formally wound up on 21 June 1995 GFCV was absorbed into the State Electricity Commission of Victoria. The distribution and retail companies were subsequently privatised. In 2003 the GASCOR shell was privatised and the balance of rights and liabilities, including residual records, were transferred to SECV Office of the Administrator (VA 4086) in 2005.
The Gas and Fuel Corporation (GFCV) was established by the Gas and Fuel Act 1950 (No.5507) and came into operation on 1 January 1951 (Government Gazette 1040, Wednesday December 13, 1950). The Act consolidated an agreement between the Metropolitan Gas Company, the Brighton Gas Company Limited and the State of Victoria to establish, constitute and incorporate a Public Authority. The Gas and Fuel Corporation was a public authority of the State owned jointly by the Government and share holders.
Powers and Functions
During the first half of 1951, while the GFCV organisation was developed and key appointments were being made, the two existing gas companies continued their normal operations under the direction of the new Board. Commercial operations of the GFCV began commenced on 1 July 1951. The Metropolitan and Brighton Gas Companies were then officially wound up.
For the first 10 years the GFCV focused on three main developments:
1) Construction and operation of the Lurgi Gas Plant at Morwell:
The Lurgi process used briquettes made from dried and compressed brown coal purchased from the State Electricity Commission of Victoria (VA 1002) to manufacture 'town gas', which was then transmitted by pipeline to the city-gate at Dandenong. The plant was progressively commissioned during 1956 and was officially opened by the Duke of Edinburgh on 5 December 1956. The plant was closed in November 1969 following the introduction of natural gas.
2) Use of Refinery Gas:
In 1954, work commenced on construction of a pipeline from the Vacuum Oil Company refinery at Altona to the West Melbourne Gasworks. It commenced operation in May 1955 and provided the GFCV with 2 million cubic feet of refinery gas per day. In 1956 another pipeline connected West Melbourne with Highett Gasworks to transmit refinery gas to that site. In 1955 GFCV commenced negotiations with the Shell Oil Company of Australia Limited to purchase Liquefied Petroleum Gas (LPG) from their Geelong Refinery. At the end of 1957 GFCV established a new Division under the brand name Heatane to market LPG. Land was purchased at Altona for a storage and bottling plant, and agents were appointed throughout Victoria. The first arrangement included a joint sales agreement with the Gas Supply Company and Geelong Gas Company, both publicly listed companies. In 1960 the Tempered Liquefied Petroleum Gas (TLPG) plant commenced supply to country towns, replacing the gasworks, which due to their age were no longer economical. In 1963 the first of the Onia-Gegi oil gas plants was commissioned at the West Melbourne Works. The refrigerated LPG storage plant at Derrimut was opened and connected into the production system via a 15-mile high-pressure main to the West Melbourne Works.
3. Gas Industry Consolidation:
Gas Industry consolidation was a provision of the Gas and Fuel Act 1950 (No. 5507) and gave the GFCV rights of acquisition over other gas undertakings in Victoria. During the early 1950s many Victorian gas undertakings approached the GFCV, seeking to be acquired. The Corporation did not see it as desirable to take over any other gas undertakings at that point. Instead they provided technical advice on request, sometimes at a modest charge, or an alternative buyer was sometimes suggested.
Natural Gas
In 1965 ESSO Gippsland Shelf Well No. 1 was reported by ESSO Exploration as having a flow of 3 million cubic feet of gas per day. Negotiations for purchasing the gas commenced between GFCV and ESSO/BHP. The transmission of the gas was a major issue due to the size of the engineering and construction involved in a pipeline from Bass Strait to Melbourne. The Victorian Pipelines Commission Act 1966 (No. 7477) authorised the VPC to construct and operate pipelines, buy and sell hydrocarbons, acquire by agreement any existing pipelines and act as a common carrier of hydrocarbons. The Victorian Pipelines Commission was constituted in February 1967 and the pipeline was commissioned in March 1969. While the pipeline was under construction GFCV and Colonial Gas Supply were preparing for the task of converting appliances to use natural gas. There were an estimated 440,000 consumers with approximately 1 million appliances in the GFCV's area of supply, and 75,000 consumers with 170,000 appliances in the Colonial Gas Association's two areas of supply. The conversion process was completed in December 1970. As conversion of appliances occurred throughout the suburbs, section by section, natural gas replaced manufactured gas in the pipelines and the closure of the gasworks began. Highett gasworks ceased operation in August 1969, Lurgi Gas Plant in November 1969 and West Melbourne in December 1970. Colonial Gas stopped production at Box Hill gasworks in November 1969 and Footscray gasworks in March 1970. The Gas and Fuel Corporation (Pipelines) Act 1971 (No. 8122) abolished the VPC and transferred its powers and functions to GFCV on 1 July 1971.
Natural gas pipelines reached Geelong and Ballarat in 1971, and in June 1971 GFCV took over the Geelong Gas Company. On 1 April 1973 GFCV and Colonial Gas Holdings brokered a mutually acceptable offer for the GFCV to purchase Colonial's assets, which included gasworks at Mount Gambier, Benalla, Shepparton, Wangaratta, Seymour and Horsham. In 1974 GFCV assessed the viability of a natural gas pipeline to Wodonga and an agreement was reached with Boral to purchase the Albury Gas Company Limited. Natural gas reached Wodonga in April 1977 and by the end of 1977 appliances in Seymour, Benalla, Wangaratta and Shepparton were converted to use natural gas.
The Longford to Dandenong pipeline held sufficient gas supply for Melbourne for five days. As gas sales increased, the reserve in the pipeline shrank. GFCV decided to construct a Liquefied Natural Gas storage facility at Dandenong. They proceeded with the project in conjunction with Commonwealth Industrial Gases Limited (CIG). One sixth of the storage tank was reserved for CIG use. Operations commenced in 1980.
In 1977 GFCV entered into the home insulation market, offering incentives for those prepared to share the responsibility of conserving fossil fuel reserves. They also opened the Energy Management Centre for the purposes of education. While it was hoped that conservation measures would extend the economic life of Bass Strait gas fields beyond 2005, GFCV's main concern was that forecast peak load would exceed supply in the 1990s. In 1978 Gas and Fuel Exploration NL was incorporated and in possession of Permit Area VIC/P11 to search for natural gas with Beach Petroleum NL. In 1985 the one millionth consumer was connected.
Dissolution
In 1991, the Government commissioned a study aimed at improving the performance of the Gas and Fuel Corporation. As a result of this study (Cresap, October 1991, Strategic and Organisational Review Final Report for the Gas and Fuel Corporation of Victoria) the Gas and Fuel Corporation was restructured into discrete business units such as corporate, transmission, distribution, retail and Heatane Gas.
Under the Gas Industry Act 1994 (No. 112 of 1994), the rights and liabilities of the GFCV were distributed among three divisions - gas distributor and retail companies managed by GASCOR, the Gas Transmission Corporation (GTC), later renamed Transmission Pipelines Australia, and independent market operator Vencorp. GASCOR was established on 20 December 1994 and continued to trade as the Gas and Fuel. They operated the low-pressure distribution assets, the gas retail function, consulting services and the Gasmart appliance retail business. GTC was the manager of the main high-pressure gas pipelines. Under Schedule 3 of the Act certain rights and liabilities remained with GFCV, and when it was formally wound up on 21 June 1995 GFCV was absorbed into the State Electricity Commission of Victoria. The distribution and retail companies were subsequently privatised. In 2003 the GASCOR shell was privatised and the balance of rights and liabilities, including residual records, were transferred to SECV Office of the Administrator (VA 4086) in 2005.
Jurisdiction: Victoria
