The first gas works began operations in Budapest on the Pest side on December 23, 1856. Due to the ever-increasing household gas consumption in Budapest, the construction of a modern, high-capacity gas works became necessary by the turn of the twentieth century.
For the location of the gas works, an estate in Óbuda was selected, as it had road, rail, and waterway connections. Following an international tender in 1908 for the conceptual planning of the Óbuda Gas Works, which was won by Albert Weiss (the owner of the gas works in Zürich), Weiss was mandated in 1909 to develop the plans for the Óbuda Gas Works. His work was supported by lighting director Izidor Bernauer and engineer Győző Schön.
Construction began in 1910, and by October 1913, most buildings were erected and equipment installed. Trial production started on October 16, 1913, and within a few months, three older gas works in Budapest were shut down. The Óbuda Gas Works was inaugurated on June 15, 1914. At that time, it was one of the most advanced gas factories on the continent, capable of producing 250,000 m³ of gas daily.
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After World War I, the lack of quality coal and the economic crisis posed difficulties for the gas works. However, with the widespread use of household gas appliances (gas stoves, gas-powered washing machines and refrigerators, boilers), by 1938, annual gas consumption had already exceeded 100 million cubic meters.
During World War II, both the Óbuda Gas Works and the gas network suffered significant damage. However, with improvised and temporary solutions, the gas supply to the capital soon resumed.
Nevertheless, the lack of quality coal, the aging infrastructure, and the increasing demand for gas made it clear that coal-based gas production was no longer sustainable.
In 1980-ies, Budapest switched to natural gas, and the gas works were decommissioned in 1984. Many buildings have been renovated and converted into office buildings in the Graphisoft business park.