Union Gas and The Municipality of Chatham-Kent seek customer interest and Provincial funding for potential pipeline
New and additional capacity could be available as early as Fall 2018
CHATHAM, ON, MAY 2, 2017 – Union Gas would like to hear from large agricultural and other businesses in the Chatham-Kent area that are interested in new or additional natural gas distribution capacity beginning as early as Fall 2018 or 2019.
In 2017, Union Gas is expanding its existing Panhandle transmission system to provide increased natural gas capacity to Windsor-Essex, Chatham-Kent and surrounding areas, including the fast-growing greenhouse market in the Leamington and Kingsville areas. Additional pipeline infrastructure expansions off Union’s Panhandle transmission system would provide for additional capacity in the Chatham-Kent area that would support additional economic growth in the greenhouse sector in 2018 and beyond.
The call for Expression of Interest is the first step in determining support for a potential expansion project, to be built along or near a proposed new pipeline corridor, which could provide up to 75,000 m3/hour of additional capacity to serve new and existing customers in this underserviced area.
“The Municipality of Chatham-Kent and Union Gas have been working together for many months exploring options to serve new agricultural business customer inquiries in this area,” said Mark Isherwood, vice-president of sales and marketing and customer care, Union Gas. “The Ontario government’s Natural Gas Grant Program can now help make the project a reality for new business customers. To maximize the economic development benefits from this funding, we are asking all potential customers, especially any large new businesses like greenhouses and others, to submit an ‘Expression of Interest’ form.”
“Chatham-Kent is excited to be working with Union Gas to help open up this area of Chatham-Kent to new economic development opportunities including greenhouse developments,” said Mayor Randy Hope. “This project could supply gas service for many hundreds of acres of new greenhouses in Chatham-Kent and we have had to turn away these opportunities in the past because of a lack of natural gas capacity in the area. This process is the first step to bring significant new gas capacity to the area to support new economic development.”
The proposed pipeline facilities will bring incremental natural gas capacity into much of northern Chatham-Kent and will potentially include facilities:
In the Tupperville area along Base Line to east of Dresden to Kent Bridge Road and south along Kent Bridge Road to Kent Bridge;
Near Dover Centre.
The development of this project is contingent on sufficient market support, approval of the project by the Ontario Energy Board (OEB) and provincial funding support. Union Gas, with the support of the Municipality of Chatham-Kent, will be applying for funding from the Ontario government’s Natural Gas Grant Program for rural natural gas expansion, with the goal of making the project economically viable for customers in the area. Municipal administration was also approved to authorize a grant, equivalent to the property tax that would be recovered on the new natural gas infrastructure being built for a period of 10 years. This would come from strategic reserves. More information and Expression of Interest bid forms can be found on www.uniongas.com/ckruralexpansion. Forms are due back to Union Gas by May 23, 2017.
About Union Gas
Union Gas Limited is a major Canadian natural gas storage, transmission and distribution company based in Ontario with over 100 years of experience and service to customers. The distribution business serves about 1.4 million residential, commercial and industrial customers in more than 400 communities across Ontario. Union Gas is one of Canada's Top 100 Employers for 2017, and has assets of $7.2 billion and approximately 2,300 employees. For more information, visit uniongas.com.
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Union Gas Limited
Union Gas Media Inquires
Ph: 416 496-5262
Commercial Inquires and Expression of Interest Bids
Municipality of Chatham-Kent Media Inquires
Communications Officer Municipality of Chatham-Kent
Phone: 519.360.1998 x3624