The 1998 Longford explosion, which created what became known as Victoria’s “gas crisis”, is now the subject of Australia’s biggest class action as industries, businesses and individual consumers seek compensation for the losses they incurred.

Julian Burnside QC is leading the class action, claiming that Esso’s failure to maintain the gas supply resulted in businesses closing and employees being stood down.

With the case eventually boiling down to the wording of contracts, Esso contends that it had no responsibility to ensure continuous supply. However, the plantiffs’ laywers have a different view.

If the case succeeds, Esso will be liable for losses not covered in its contract with Victoria, and Esso Australia’s Chairman, Robert Olsen, said such a decision would  extend the boundaries of the law, thereby exposing other businesses to risks that might not be insurable.

Mr Olsen said that under Australian law, the company has no legal responsibility for the losses being claimed.