Union Gas has cancelled plans for a $15-million natural gas pipeline expansion to the community of Red Lake. Unsure of whether the company could attract industrial and residential customers to make the project feasible, the money has been reallocated to other projects. The plan called for 44 kilometres of pipeline to be installed between Red Lake and the former Griffith Mine, and 60 kilometres of infrastructure to service Red Lake, Balmertown and Cochenour. Ontario Heritage Fund committed $3 million to the project along with $1 million from Placer Dome and $250,000 from Red Lake council. Town officials were awaiting a $3-million contribution from FedNor, but Union Gas officials say the federal funding hurdle was never a consideration.
