Geelong Gas Company
Encyclopedia
The Geelong Gas Company was a private company set up to produce and distribute town gas in the city of Geelong
Geelong, Victoria
Geelong is a port city located on Corio Bay and the Barwon River, in the state of Victoria, Australia, south-west of the state capital; Melbourne. It is the second most populated city in Victoria and the fifth most populated non-capital city in Australia...

. From a gasworks
Gasworks
A gasworks or gas house is a factory for the manufacture of gas. The use of natural gas has made many redundant in the developed world, however they are often still used for storage.- Early gasworks :...

 in North Geelong
North Geelong, Victoria
North Geelong is a suburb of Geelong in the Australian state of Victoria. The suburb will be bypassed by traffic from Melbourne coming from the Princes Freeway by the creation of the Geelong Ring Road, due for completion in 2009....

 it converted coal into town gas for use in homes and industry. The company was founded in 1858 and existed until 1971 when Geelong was converted to natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 and the company was bought out by the Gas and Fuel Corporation of Victoria
Gas and fuel corporation of victoria
The Gas and Fuel Corporation of Victoria was a government-owned monopoly supplier of household gas in Victoria, Australia.In 1951, the Victorian government took over two of the three main gas utilities in Melbourne - the Metropolitan Gas Company and the Brighton Gas Company...

.

Establishment

The first attempts at establishing a reticulated gas supply in Geelong were made in 1854. However, it was not until July 1857 that a meeting was held at the National Hotel to establish a gas company in Geelong. The first official meeting was held on August 20 1857.

The company was established by Act No. 57 in 1857 "to promote the convenience of the inhabitants of the Town of Geelong and the municipal district of Newtown and Chilwell."

The company planned to built a plant capable of producing 25 Mcuft of gas a year. To distribute this gas to customers, 11 miles (17.7 km) of gas mains was planned, made of 12 inches (304.8 mm) to 2 inches (50.8 mm) pipes.

April 1858 saw the company start its search for land to erect the gasworks
Gasworks
A gasworks or gas house is a factory for the manufacture of gas. The use of natural gas has made many redundant in the developed world, however they are often still used for storage.- Early gasworks :...

 on. The first site chosen was in central Geelong. bounded by Bellarine Street, Corio Bay
Corio Bay
Corio Bay is one of numerous bays in the southwest corner of Australia's Port Phillip, and is the bay on which abuts the City of Geelong. The nearby suburb of Corio takes its name from Corio Bay.-Name:...

, Corio Street and Corio Terrace (now Brougham Street). This site was rejected by nearby homeowners, as well as government representative, MLC M.J. Strachan, due to health issues having the plant in the city. The Gas Company Act of June 4 1858 prohibited gas production in the Corporation of Geelong
City of Geelong
The City of Geelong was a Local Government Area located about southwest of Melbourne, the state capital of Victoria, Australia. The city covered an area of , and existed from 1849 until 1994.-History:...

 leaving the company to find another site.

Land on the western side of the railway station at North Geelong
North Geelong, Victoria
North Geelong is a suburb of Geelong in the Australian state of Victoria. The suburb will be bypassed by traffic from Melbourne coming from the Princes Freeway by the creation of the Geelong Ring Road, due for completion in 2009....

 was purchased from the Geelong and Melbourne Railway Company
Geelong and Melbourne Railway Company
The Geelong and Melbourne Railway Company was a railway company in Victoria, Australia. The company opened a railway in 1857 from Geelong to Newport. In 1859 this line was extended to Spencer Street Station and a branch line was opened from Newport to Williamstown Pier. The Company was taken...

 for the gasworks. The sale was accepted in March 1859, for £200 an acre, for a total of 6 acres (24,281.2 m²). A railway siding for the gasworks was provided in September 1859, and was the first private siding in the area.

On February 10 1860 the foundation stone was laid. A time capsule
Time capsule
A time capsule is an historic cache of goods or information, usually intended as a method of communication with future people and to help future archaeologists, anthropologists, or historians...

 was also laid with newspapers, coins, a copy of the constitution of company, and a list of those involved with the gasworks construction. This capsule was recovered in 1924 and presented to the company. The original cost of the scheme was not exceed £25,000. The final price was £24,135.

The first gas lamp connected to the system was tested on 3 May 1860. Three weeks later on 24 May there was an official event marking the first gas lamp in Geelong.

Expansion

In the first year of operation for the company, a ten per cent dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...

 was paid to shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....

s from profits. By 1894 13 per cent of business and street lighting in Geelong was gas powered. In the City of Geelong
City of Geelong
The City of Geelong was a Local Government Area located about southwest of Melbourne, the state capital of Victoria, Australia. The city covered an area of , and existed from 1849 until 1994.-History:...

 there were 263 street gas lamps, in the City of Newtown and Chilwell
City of Newtown
The City of Newtown was a Local Government Area located about west of the regional city of Geelong, Victoria, Australia. The city covered an area of , and existed from 1858 until 1994.-History:...

 there were 48, in the City of Geelong West
City of Geelong West
The City of Geelong West was a Local Government Area located about west of the regional city of Geelong, Victoria, Australia. The city covered an area of , and existed from 1875 until 1994.-History:...

 there were 45, and there was a single lamp in the Shire of South Barwon
City of South Barwon
The City of South Barwon was a Local Government Area in Victoria, Australia, which contained some Geelong suburbs south of the Barwon River, and extending to Torquay in the south and Barwon Heads to the east...

. The street lights used gave the equivalent light of 15 sperm candles for each 5 cubic foot (0.141584235 m³) of gas burnt. However by 1913 most of the major street lighting contracts had been lost to electricity.

By the end of World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

 capacity at the gasworks was stretched, so in 1924 the works were rebuilt with new technology. 1925 was the first industrial use of gas, before this time it was primarily used in households. The company built new offices at 161 Ryrie Street in 1920.

In 1957 the No. 5 gas holder was erected in Riversdale Road Newtown
Newtown, Victoria
Newtown is an inner western suburb of Geelong, Victoria, Australia. It is a primarily residential area occupying one of the highest points of urban Geelong, has always been a desirable place of residence and it is the location of many of Geelong's oldest and most valuable properties.The locality of...

 at a cost of £110,000 pounds to serve proposed gas main extensions south of Barwon River
Barwon River (Victoria)
The Barwon River rises in the Otway Ranges of Victoria, Australia, runs through Winchelsea and the city of Geelong, where it is joined by the Moorabool River, and enters the sea at Barwon Heads after passing through Lake Connewarre on the Bellarine Peninsula...

. By 1958 the company had 18,000 customers and 180 miles (289.7 km) of gas mains throughout Geelong. In 1963 it had grown to 250 miles (402.3 km) of gas mains, 46 per cent being less than 10 years old, and 30 per cent less than 5 years old. A new gas holder of 1 Mcuft capacity was also commissioned during 1964, built by the Power-Gas Corporation (Australia) Pty Ltd.

Obsolescence

By the 1960s production of gas from coal was an obsolete technology. By 1963 the Geelong Gas Company had changed production methods, using a Onia Gegi reforming plant to convert hydrocarbon
Hydrocarbon
In organic chemistry, a hydrocarbon is an organic compound consisting entirely of hydrogen and carbon. Hydrocarbons from which one hydrogen atom has been removed are functional groups, called hydrocarbyls....

 gases from the Shell
Shell Australia
In Australia, Royal Dutch Shell conducts a large range of activities. These include exploration for, and the production and commercialization of, oil and natural gas, the operation of two refineries, 19 terminals and 33 depots for the manufacture and distribution of oil products; and the marketing...

 oil refinery
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...

 at Corio
Corio, Victoria
Corio is a residential, industrial and one of the largest suburbs of Geelong, Victoria, Australia, located approximately 9 km north of the Geelong central business district...

 into town gas. The new reforming plant was visited by many other gas companies as an example of modern Syngas
Syngas
Syngas is the name given to a gas mixture that contains varying amounts of carbon monoxide and hydrogen. Examples of production methods include steam reforming of natural gas or liquid hydrocarbons to produce hydrogen, the gasification of coal, biomass, and in some types of waste-to-energy...

 technology. The former coal carbonising equipment was only used when coke
Coke (fuel)
Coke is the solid carbonaceous material derived from destructive distillation of low-ash, low-sulfur bituminous coal. Cokes from coal are grey, hard, and porous. While coke can be formed naturally, the commonly used form is man-made.- History :...

 (a by-product of the gasification process) was required.

The discovery of abundant reserves of natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 in Bass Strait
Bass Strait
Bass Strait is a sea strait separating Tasmania from the south of the Australian mainland, specifically the state of Victoria.-Extent:The International Hydrographic Organization defines the limits of the Bass Strait as follows:...

 shook up town gas production. In 16 March 1967 a letter of intent was signed by the Geelong Gas Company with the Esso Exploration and Production of Australia Ltd
Esso Australia
Esso Australia is an Australian affiliate of ExxonMobil, the US based oil giant. Esso operates a number of oil and gas platforms in Bass Strait, south east of Melbourne, Australia, as well as a gas processing facility at Longford and Long Island Point in Hastings....

 and Haematite Petroleum Pty Ltd to buy natural gas from their Bass Strait
Bass Strait
Bass Strait is a sea strait separating Tasmania from the south of the Australian mainland, specifically the state of Victoria.-Extent:The International Hydrographic Organization defines the limits of the Bass Strait as follows:...

 gas fields for a 20 year period.

The cost of conversion of the Geelong system to natural gas was estimated at $2.5 to $3 million dollars, with a likely completion date of 1971. The conversion entailed building a new pipeline from Melbourne, purging the old gas from the mains, change over of all burners in all gas appliances, changes to valves in the distribution network to permit the higher pressures, and removal of the now-unneeded gasworks.

The main natural gas pipeline between Geelong and Melbourne was finished in February 1971. Costing $1.7 million, the pipeline was designed to operate at a maximum pressure of 1000psi, and carry 60 Mcuft of gas a day. Conversion of homes to natural gas commenced on 15 March 1971, starting at suburbs furthermost from the gasworks, and was completed by the end of August 1971.

The end

A takeover bid for the Geelong Gas Company was issued on 11 December 1964 when the company was served with a notice of acquisition by the Gas and Fuel Corporation of Victoria
Gas and fuel corporation of victoria
The Gas and Fuel Corporation of Victoria was a government-owned monopoly supplier of household gas in Victoria, Australia.In 1951, the Victorian government took over two of the three main gas utilities in Melbourne - the Metropolitan Gas Company and the Brighton Gas Company...

. At this time the 20 shilling ($2) shares in the company were valued at one pound, 16 shillings and sixpence ($3.65), with a total of about 800 shareholders in the company. The takeover bid was later withdrawn.

A takeover bid by the Gas and Fuel Corporation was made in 1970 when a Bill was passed in the State Parliament, with shareholders offered $3.40 a share. The takeover was ratified when 70% of shareholders accepted the offer, and the Geelong Gas Company ceased to exist on 30 June 1971.deListedL GEELONG GAS COMPANY LIMITED

The was some controversy over the takeover, with it being revealed that a senior accountant with the Gas and Fuel Corporation had bought 11,000 shares in the Geelong Gas Company shortly before the takeover was made public. It was proved that the accountant had used insider knowledge
Insider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...

 to buy the shares, but the State Government was told no action could be taken. The issue remained alive until late 1971 when then Opposition Leader Mr Clyde Holding
Clyde Holding
Allan Clyde Holding Australian politician, was Leader of the Opposition in Victoria for ten years, and was later a federal minister.-Early life and education:...

 called for a further investigation. This move was quashed by then Premier Sir Henry Bolte
Henry Bolte
Sir Henry Edward Bolte GCMG was an Australian politician. He was the 38th and longest serving Premier of Victoria.- Early years :...

 on the advice of the Victorian Auditor General.

The gasworks themselves were demolished in September 1972, but the railway siding and the concrete foundations of a gas holder are still visible on the site today. The company offices at 161 Ryrie Street are now listed on the Victorian Heritage Register
Victorian Heritage Register
The Victorian Heritage Register lists places of cultural heritage significance to the State of Victoria, Australia. It has statutory weight under the Heritage Act 1995 which establishes Heritage Victoria as the permit authority...

.
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