UPDATE at 12pm: Gas company now on scene but predict it will take at least two hours to isolate the leak due to the location of the pipe.
CFA was called to the scene around 10.15am and on arrival found a 63mm high pressure pipe was leaking.
CFA requested that police evacuate the immediate area.
CFA Wonthaggi Brigade Captain Kim O'Connor said all businesses in the area had been closed including the cinema which was in the middle of running a movie.
"At the moment our crews are monitoring the leak and removing any possible ignition sources until the gas company arrive on scene," he said.
Four CFA trucks and around 20 firefighters are on scene along with Victoria Police and Ambulance Victoria.
There have been no reports of illness or injury due to the incident.
Please call CFA Media on (03) 5330 3124 for further details.