Activities
In 1953 the Gas Council formed D’Arcy Exploration as a joint venture with BP. It allocated £1 million to search for natural gas on land; in 1954 gas was found at Cousland near Edinburgh.[1]
The Midlands Research Station was opened at Solihull in 1954.[1]
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 carbonising 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.[12]
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.[13] 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.[14] Following this successful trial a full scale LNG plant was built at Canvey taking LNG from Algeria.[13]
The Gas Act 1960 increased the Gas Council's borrowing powers to £500 million.[10]
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.[6] The new powers allowed it to enter joint ventures with Amoco on parts of the Leman and Indefatigable gas fields.[1]
The Gas Advisory Council was established in 1965 to allow workers and management and trade unions to discuss national objectives.[1]
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.[10]
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.[10] The Gas Council offered 2.5d. to 4d. per therm whereas BP proposed 6d. to 7d. a therm. After an intervention from the minister a figure of 5d. was agreed.[10] 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.[10] The Gas Council built a network of 36-inch diameter pipelines to transmit the gas, which was to become the National Transmission System.[14][15]
In 1968 a major restructuring of the Gas Council was undertaken, driven by the advent of natural gas and the need to plan nationally.[16] 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.[10] The deputy chairman Arthur Hetherington became the chief executive.[16]
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.[17]
