The theatre is constructed within the masonry shell that used to house the gas holder, also known as a gasometer, proper.

Built in 1883, it was one of the first independent works of Martin Nyrop, who would later become known for his design of the Copenhagen City Hall.

The gasometer now housing Østre Gasværk Teater was constructed in 1881-83 as the first of a series of expansions that quadrupled the capacity of the plant in the time up to the turn of the century.

From 1992-98 the theatre had big success with musicals, including Les Misérables, Miss Saigon and Atlantis .

It is now operated as a part of the Københavns Teater in affiliation with the Betty Nansen Teatret, Folketeatret and Nørrebros Theater.