Ontario Welcomes $358 Million Natural Gas Investment in Southwest Region

Pipeline expansion project expected to create 7,000 good-paying jobs, encourage economic development and support province’s leading greenhouse industry

The Voice of Canada: The Ontario government is welcoming the start of construction by Enbridge Gas on its $358 million Panhandle Regional Expansion Project. The project is expected to secure approximately 7,000 jobs, enable $4.5 billion of investment opportunities in the province and support Ontario’s expansion of reliable, affordable and cleaner energy to power its growing economy.

“Our government is continuing to secure the reliable and affordable energy that is critical to our plan to rebuild Ontario’s economy, keep costs down for families and build homes across the province,” said Premier Doug Ford. “This project will help deliver that reliable energy supply and, in the process, create good-paying jobs, support our world-leading greenhouse sector and power Ontario’s economic growth for many years to come.”

This project will lead to the construction of approximately 19 kilometers of new pipeline that will parallel the existing pipeline and increase the capacity of Enbridge’s Panhandle Transmission System. The pipeline expansion is a vital investment in energy infrastructure that will encourage economic development in Southwestern Ontario and support the growth of the region’s vibrant world-leading greenhouse industry.

“A continued priority for our government is delivering affordable energy to Ontario families,” said Stephen Lecce, Minister of Energy and Electrification. “Our population is growing, and the economy is electrifying, which underscores why our government is determined to generate more clean and reliable energy to drive our growth. The Panhandle Transmission System is a vital part of that vision as it helps to ensure that families and businesses across Southwestern Ontario have access to affordable power now and into the future, while creating 7,000 good paying jobs.”

The new pipeline will also help supply the electricity generation needed to meet the province’s growing energy demands, due to increasing electrification, strong population and economic growth. Access to a reliable and affordable electricity supply is increasingly a key priority for companies, particularly those investing in large-scale manufacturing projects.

“Southwestern Ontario is a great place to both live and work, and it is seeing huge economic and population growth. With that growth comes the need for more energy of all types to power the success of industries in the region,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “This new investment in natural gas energy expansion will enable the rapid continued growth of our world-leading greenhouse industry in Southwestern Ontario and strengthen the province’s agri-food sector. ”

The Panhandle Regional Expansion Project is part of Ontario’s efforts to meet the province’s growing energy demands. As outlined in Powering Ontario’s Growth, Ontario has also secured Canada’s largest clean energy storage procurement, invested more than $1 billion in energy efficiency programs, is supporting the continued safe operation of the Pickering Nuclear Generating Station and is building Canada’s first grid-scale Small Modular Reactor.

“Enbridge Gas is committed to meeting the energy needs of Southwestern Ontario. Through the expansion of the Panhandle system and increased access to energy at the Enbridge Gas Dawn Hub, we are proud to support the region’s growth by providing reliable and affordable energy to residential, commercial, and industrial customers,” said Michele Harradence, EVP and President, Enbridge Gas Distribution & Storage. “This major natural gas project reflects our dedication to serving the community and powering the progress of Ontario’s southwest region.”

Quick Facts

• In May 2024, the Ontario Energy Board (OEB) granted Enbridge Gas leave to construct (LTC) for the Panhandle Regional Expansion Project, permitting the project to proceed.
• The Panhandle Regional Expansion Project has a targeted in-service date of November 1, 2024, with additional construction related to the project to be completed in 2025.
• The Panhandle Transmission System currently serves residential, commercial, industrial, greenhouse and power generation customers in Dawn-Euphemia, St. Clair, Chatham-Kent, Windsor, Lakeshore, Leamington, Kingsville, Essex, Amherstburg, LaSalle, and Tecumseh.
• Ontario’s electricity system is among the cleanest in the world, powered by a diverse supply mix including nuclear, hydroelectric, renewables, natural gas and biomass.
• The Independent Electricity System Operator’s Pathways to Decarbonization Report forecasts that in less than 30 years, Ontario could need to more than double its electricity generation capacity from 42,000 megawatts (MW) today to 88,000 MW in 2050.