Province to spend $130 million to expand natural gas access through 2023

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Ontario Construction News staff writer

Ontario is expanding access to natural gas to more families and businesses throughout rural, northern Ontario and Indigenous communities, Associate Minister of Energy Bill Walker announced at Snobelen Farms in Lucknow on Tuesday.

“Natural gas is a safe, reliable and lower-cost heating fuel that will lead to cheaper home heating costs for families and more investment by businesses throughout the province.” said Walker. “We’re putting more money back in people’s pockets and making communities more attractive for job creation and new business growth.”

The Natural Gas Expansion Program will allocate approximately $130 million to support new natural gas expansion projects over a three-year period from 2021 to 2023.

The Ontario Energy Board (OEB) will collect information about natural gas expansion opportunities across Ontario and develop a report on eligible projects for the ministry by August 2020. The government will then make a final decision on future expansion projects eligible to receive support through the government’s Natural Gas Expansion Program.

“Our government made a commitment to reduce energy costs and expand access to natural gas to underserved parts of Ontario,” said Greg Rickford, Minister of Energy, Northern Development and Mines. “By expanding access to natural gas, our government is making life more affordable for businesses and families in rural, northern and Indigenous communities.”

In a Dec. 12 letter to the OEB, Rickford says he expects the Board to issue a call for information in early 2020, including details of the information to be filed by interested project proponents, with a minimum 90-day window for information submissions.

Huron-Bruce MPP Lisa Thompson says the program is “a huge win for Bruce County.”

“The average household switching to natural gas could save up to $2,500 a year in energy costs,” she said.

The Natural Gas Expansion Program was created to help extend access to natural gas to unserved communities across the province, providing access to thousands of households and businesses.

Nine projects were selected under the first phase of the program, and construction is underway in Southern Bruce, Chatham-Kent and the Chippewas of the Thames First Nation.

For the average residential customer in Ontario, the switch from electric heat, propane or oil to natural gas can result in savings from $800 to $2500 per year on their heating costs.

In Chatham-Kent, it is estimated that the additional natural gas capacity could create up to 1,400 jobs in the greenhouse industry alone.

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