Python Gzip - Appending to file on the fly
That works in the sense of creating and maintaining a valid gzip file, since the gzip format permits concatenated gzip streams.
However it doesn't work in the sense that you get lousy compression, since you are giving each instance of gzip compression so little data to work with. Compression depends on taking advantage the history of previous data, but here gzip has been given essentially none.
You could either a) accumulate at least a few K of data, many of your lines, before invoking gzip to add another gzip stream to the file, or b) do something much more sophisticated that appends to a single gzip stream, leaving a valid gzip stream each time and permitting efficient compression of the data.
You find an example of b) in C, in gzlog.h and gzlog.c. I do not believe that Python has all of the interfaces to zlib needed to implement gzlog directly in Python, but you could interface to the C code from Python.