Around 500 businesses have been awarded a total of $32 million to compensate for property damage during the two week gas shutdown in 1998 following an explosion at Esso’s Longford site in Victoria’s south east.

Two Esso workers were killed in the explosion which crippled what was then Victoria’s only gas processing and distribution hub.

Hospitals were left without power, heating and laundry services and large sections of the manufacturing sector ceased production when Longford blew up, which saw mobile military style generators flown in from interstate to provide backup power to emergency services.

Esso public affairs manager Chris Welberry welcomed an end to the proceedings.

"In February 2003 the court ruled that economic loss as a result of the accident in 1998 was not claimable," he said.

"But the court did allow a number of limited claims for what was termed physical damage, where there was spoilage and so forth as a result of the gas stoppage.

"Today's settlement finalises those claims."