To serve a growing demand for natural gas in the Chatham-Kent area, Union Gas Limited, ("Union Gas") is pleased to announce this Expression of Interest to expand the existing natural gas system in Chatham Kent.
The potential expansion facilities include a new 20-kilometre 8-inch diameter pipeline from the "Panhandle System" in the Tupperville area, along Base Line to east of Dresden to Kent Bridge Road and south along Kent Bridge Road to Kent Bridge, as well as a 500-metre, 12-inch diameter pipe near Dover Centre (see map below).
Map of Potential Facilities
Note: Customer economics improve with proximity to the potential facilities. For a more detailed map of the existing and potential natural gas pipeline facilities near your property or potential business location, please contact an Account Manager.
This Chatham-Kent Rural Pipeline Expansion Project (the "Project") could provide up to 75,000 m3/hour of additional capacity to serve new and existing business customers in this rural, under-serviced area, depending upon location. Assuming an average capacity need of less than 100 m3/hour per acre of greenhouse, the potential Project could meet the gas needs of an equivalent of over 750 acres of new greenhouse demand and could be in-service beginning as early as fall 2018 or 2019.
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. If sufficient demand exists, 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, with the goal of making the Project economically viable for customers in the area. Assuming the Project is successful in obtaining adequate funding and sufficient customer interest is expressed, the estimated transmission capacity cost allocation for new customers would be in the range of $250 - $350 per m3/hour. This allocation does not include the individual customer specific costs that are required to serve each customer such as station costs, service lateral costs and any other main extensions required. This allocation is meant to address the facilities shown on the map above. The customer allocation and any customer specific service costs will be covered by a combination of a long term contract and/or an Aid to Construct.
Union Gas will consider the size and location of all requests for incremental (new) capacity in designing the optimal facilities. The final design may differ from the initial proposal. If insufficient customer interest or required provincial funding is not forthcoming, the Project would not likely proceed as proposed.
Capacity would be available for the following services, depending on market support:
- New firm distribution service
- Conversion of existing interruptible distribution service to firm service
- New interruptible distribution service
The purpose of this non-binding Expression of Interest process is to gauge potential customer interest in the area and consolidate it in order to optimize the facilities design.
This Expression of Interest process closes, and completed Expressions of Interest Bid Forms are due, no later than 12:00 p.m. EDT on May 23, 2017.