The Gas Act 1965 (c. 36) is an Act of the Parliament of the United Kingdom which extended the powers of the Gas Council to buy, make or supply gas; it authorised and controlled the underground storage of gas; and permitted the sale of industrial gas for non-fuel purposes. The Act was in response to changing technologies that had developed since the gas industry was nationalised in 1949.

To finance the increased scope of the Gas Council the Gas (Borrowing Powers) Act 1965 (c. 60) was enacted which increased the council's borrowing powers to up to £1,200 million.^[1]

The government recognised that there had been significant technological progress and changes in the gas industry since nationalisation in 1949. There were new possibilities of undertaking large-scale supply schemes associated with the import of liquefied natural gas from Algeria and the discovery of natural gas on the UK Continental Shelf.^[2][3] There were also opportunities for underground gas storage. Such storage enabled the industry to build up a reserve of gas in summer, when demand was low, which was drawn down to meet the higher demand in winter.^[2]

The Gas Act 1965 had two main purposes: to make changes in the structure of the gas industry; and to allow the industry to develop underground storage of gas in natural strata.^[2] A subsidiary purpose was to amend Section 52 of the 1948 Act dealing with the industry's monopoly of piped gas supplies for use as fuel. The Gas Council was given powers to manufacture gas and supply it to the area gas boards.^[2]

The increased scope of work of the Gas Council was financed by increased borrowing. The limit had been £650 million, the Gas (Borrowing Powers) Act 1965 was enacted which increased the Council’s borrowing to up to £1,200 million.^[1]

The Gas Act 1965 received royal assent on 5 August 1965.^[4] Its long title is: ‘An Act to confer additional functions on the Gas Council and to make further provision as to the rating of the Gas Council and Area Gas Boards; to increase the number of members of the Gas Council; to regulate and facilitate the storage of gas by the Council and those Boards in underground strata, and to modify section 52 of the Gas Act 1948; and for connected purposes.’

The effect of the Act was to put the Gas Council on a par with the area gas boards. It was enabled ‘to manufacture gas, to get or acquire gas in or from Great Britain or elsewhere and to supply gas in bulk to any area board. It was also enabled to manufacture, treat, supply or sell solid fuels, products or by-products, in the same way as the area boards.^[5]

The Gas Council played an increasing role in the direction of the British gas industry. It acted as the central purchaser of natural gas from Algeria and the North Sea, the distribution of which was national enterprise.^[6]

The Act allowed the Minister to appoint three extra members to the Gas Council board, this was increased to five in 1968.^[5]

The increased remit of the Gas Council was reflected in the Gas (Borrowing Powers) Act 1965 (c. 60) which was enacted to increase the council's financial limit from £650 million to £900 million, although the Minister of Power was empowered to increase this to £1,200 million. The Gas Council expected that £1,000 million would cover its requirements to 1970.^[5]

As a consequence of the Section 1(3)(a) of the Gas and Electricity Act 1968 the Gas (Borrowing Powers) Act 1968 ceased to have effect.

Sections 1–3, 29 and 30 of the 1965 Act were repealed by the Gas Act 1972.

The Gas Act 1986 amended parts of the Gas Act 1965

• Oil and gas industry in the United Kingdom
• British Gas