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The Gas Council was a UK government body that provided strategic oversight of the gas industry in England, Wales and Scotland between 1949 and 1972.
The British gas industry was nationalised under the provisions of the Gas Act 1948 (11 & 12 Geo. 6. c. 67) which established the Gas Council with effect from 1 May 1949. The council acted as channel of communication between the Minister of Fuel and Power and the industry; it carried out research; undertook labour negotiations on matters such as wages; and acted as the voice of the gas industry.
The Gas Council was abolished on 31 December 1972 under the terms of the Gas Act 1972 (c. 60). This restructuring of the gas industry, to manage the advent of North Sea gas, established the British Gas Corporation to centralise control and operation of the industry.
In June 1944 the Minister of Fuel and Power appointed a committee of inquiry under the chairmanship of Geoffrey Heyworth to review the structure and organisation of the industry and advise on changes to develop and cheapen gas supplies. The committee reported in November 1945 and recommended the compulsory purchase by the government of all undertakings and the creation of ten regional gas boards. The Heyworth Committee report formed the basis of the Gas Act 1948.
The Gas Act 1948 was one of a number of acts promulgated by the post-war Labour government to Nationalization elements of the UK's industrial infrastructure; other Acts include the Coal Industry Nationalisation Act 1946; the Transport Act 1947 (railways and long-distance road haulage); the Electricity Act 1947; and the Iron and Steel Act 1949.
The industry was fragmented with limited cooperation and coordination between undertakings. The exception were some industry-wide bodies with an interest in aspects of the industry. These included the National Gas Council which was established in 1916 to deal with matters that affected the whole of the industry, it included representatives of all the governing bodies. The British Commercial Gas Association was founded in 1912 and served as the publicity agency for the industry. There was also the National Federation of Gas Coke Associations, the Federation of Gas Employers, and the Association of Gas Corporations. The British Gas Federation was established in 1934 to represent collective interests of the council and association. In 1943 the industry proposed the establishment of the British Gas Council amalgamating the two existing bodies. The new organisation was established in 1946 as a company limited by guarantee. It represented 95 percent of the gas suppliers in Britain. It was chaired by Sir Edgar Sylvester (later chairman of the Gas Council) and its aim was to oppose nationalisation. The Gas Council, under Section 62 of the 1948 Act, took over these bodies.
Ministerial oversight of the gas industry prior to nationalisation was exercised by the Board of Trade until 1942, then the Ministry of Fuel and Power (1942 – 1949).
The Gas Act 1948 establish twelve area gas boards, which assumed ownership of the gas undertakings. The act also established the Gas Council. The Act took effect from 1 May 1949.
(a) to advise the Minister in questions affecting the gas industry and matters relating thereto;
(b) to promote and assist the efficient exercise and performance by Area Boards of their function.
The council's legal powers were extended by the Gas Act 1965 (c. 36) to allow it to borrow more money and to manufacture or acquire gas and supply gas in bulk to area boards.
And there were five deputy chairmen:
Upon the establishment of the British Gas Corporation on 1 January 1973 the chairman and deputy chairman of the abolished Gas Council, Sir Arthur Hetherington and Denis Rooke, took similar roles in the new corporation to provide continuity.
The Midlands Research Station was opened at Solihull in 1954.
The Gas Council presided over two major changes in the technological basis of the industry. Firstly, from the late 1950s, a shift way from conventional Carbonization plant for the production of town gas to chemical reforming using light feedstocks from oil refineries. And secondly the conversion of the gas supply from town gas to natural gas as North Sea gas became available from 1967.
The first transnational shipment of liquefied natural gas took place left the USA on 25 January 1959, arriving at a new LNG terminal on Canvey Island 27 days later. The council was responsible for the construction of an 18-inch diameter methane pipeline from Canvey to Leeds to supply methane feedstock for reforming plant to most area boards. Following this successful trial a full scale LNG plant was built at Canvey taking LNG from Algeria.
The Gas Act 1960 increased the Gas Council's borrowing powers to £500 million.
The Gas Act 1965 (c. 36) and the Gas (Borrowing Powers) Act 1965 (c. 60) increased the council's borrowing powers to £1,200 million; it was also allowed to manufacture or acquire gas and supply gas in bulk to Area Boards. The new powers allowed it to enter joint ventures with Amoco on parts of the Leman and Indefatigable gas fields.
The Gas Advisory Council was established in 1965 to allow workers and management and trade unions to discuss national objectives.
The Gas Council chairman Sir Henry Jones announced in 1966 that Britain would convert from manufactured to natural gas and formed a Conversion Executive. A Gas Conversion Association was also established to represent the interests of contractors.
A contract was made with BP in 1967 to purchase natural gas from the West Sole Field. This was to be 50 million cubic feet per day for 15 years. The Gas Council offered 2.5 d. to 4 d. per therm whereas BP proposed 6 d. to 7 d. a therm. After an intervention from the minister a figure of 5 d. was agreed. Soon after 25-year contracts were made with Phillips, Shell/Esso and Gas Council/Amoco for gas from fields (Hewett, Leman and Indefatigable) feeding the Bacton terminal in Norfolk. At both Easington, where gas from West Sole landed, and at Bacton the council built terminals to receive cleaned gas which was then metered; blended; had odorant added; and had the flow controlled. The Gas Council built a network of 36-inch diameter pipelines to transmit the gas, which was to become the National Transmission System.
In 1968 a major restructuring of the Gas Council was undertaken, driven by the advent of natural gas and the need to plan nationally. The area boards which had been accountable directly to the minister, now had their activities channelled though the council. A central marketing office was established for selling gas to large industrial customers, the director sat on the Gas Council board. As well as Marketing there were divisions for Economic Planning, Production and Supply; Research and Development and Personnel, whose directors were on the board. The deputy chairman Arthur Hetherington became the chief executive.
The Gas Council/Amoco group discovered oil in Block 22/18 of the North Sea in 1971, in what were to be named the Arbroath and Montrose oil fields.
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