A group of communities on Lake Superior’s north shore are applauding Queen’s Park for including the Natural Gas Access Loan Program in the provincial budget.
Last year, Schreiber, Terrace Bay, Marathon, Manitouwadge and Wawa signed franchise agreements with Toronto’s Northeast Midstream LP for a project that extends gas service to 11,000 residents and businesses through the use of liquefied natural gas (LNG).
In a Feb. 25 news release, the communities said the loan program goes a long way toward helping them significantly lower energy costs.
Historically, it’s been difficult to expand gas distribution to these communities, which has limited residents and businesses to using propane, fuel oil, wood and electricity for heating, which are expensive and can be unreliable. Residents and businesses pay up to four times more than others in Ontario for space and water heating.
LNG is natural gas in a liquid state. It’s cooled to minus 162 degrees Celsius and condenses into a fluid that is safe, easy to store, can be transported long distances and still be economical to use as fuel.
By utilizing LNG, the cost of heating homes and fueling businesses in this region can be reduced dramatically, the communities said.
"The average residential customer is expected to save $1,000 to $3,000 annually which is particularly helpful in a region where incomes fall significantly lower than elsewhere in Ontario," said Terrace Bay Mayor Jody Davis in a statement. "Furthermore, natural gas can cut operating costs and reduce emissions for large industry players in Northern Ontario, improving competitiveness and economic viability."
Bringing LNG to Northern Ontario is also expected to open up new opportunities and support the use of low-carbon fuels for industry, trucking and shipping, the communities said.
The North Shore communities and Northeast Midstream said they look forward to working with the Ministry of Economic Development, Employment and Infrastructure on implementing the Natural Gas Access Loan Program and the next steps.
