Officials with the Town of Red Lake say the cost of expanding a natural gas pipeline to the community has jumped by more than $2.3 million over last year's estimate, and they are now turning to the federal government for more money.
Union Gas cancelled a $15.2-million natural gas pipeline expansion in the area last spring, citing a lack of funding as the cause.
The project called for 44 kilometres of pipeline to be installed between Red Lake and the former Griffith Mine, and 60 kilometres of pipeline infrastructure to service Red Lake, Balmertown and Cochenour.
The project had a $3-million commitment from the Northern Ontario Heritage Fund, $1 million from Placer Dome Canada and $250,000 from the Town of Red Lake, consisting primarily of in-kind returns of gravel and equipment. The town was also trying to secure $3 million from FedNor. The heritage fund promised its same amount for the project if the municipality could put together a business plan by July 31.
Union Gas must also reconfirm its commitment to the project by Nov. 30 to permit a 2002 construction start.
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