Grimsby – Lincoln Regional Expansion Project
Update on Expression of Interest Program – as of May 16, 2020
The Expression of Interest process closed on May 13, 2020 and Enbridge thanks those that submitted bid forms. On May 15th, 2020, the Ontario Energy Board announced an extension to the deadline for Enbridge Gas to submit its applications to the Ontario government’s Natural Gas Expansion Program. The previous deadline was June 3rd, 2020 and it is now August 4, 2020. Enbridge Gas now anticipates allocating capacity on a preliminary and conditional basis to successful bidders no later than August 5th 2020 (was June 5th, 2020).
To serve a growing demand for natural gas in the region in an around the Grimsby – Lincoln and West Lincoln areas, Enbridge Gas Inc. ("Enbridge") is pleased to announce this Expression of Interest to expand the existing natural gas system to serve this area (see map below).
This Grimsby – Lincoln Regional Expansion Project (the “Project”) could provide up to 10,000 m3/hour of additional natural gas capacity to serve new and existing business customers in this developing area, depending upon location. The potential Project is targeting incremental large volume commercial and industrial growth, including greenhouse projects planned to develop over the next five to ten years and could be in-service as early as fall 2022.
Enbridge Gas recognizes that with the COVID-19 pandemic, many businesses are currently facing significant challenges however in an attempt to leverage Ontario's Natural Gas Expansion Support Program the process must move forward at this time.
The development of this Project is contingent upon sufficient market support, approval of the Project by the Ontario Energy Board ("OEB") and government funding support. If sufficient demand is demonstrated, Enbridge Gas, with the support of local government, will apply for funding from the Ontario government’s Natural Gas Expansion Support 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 Hourly Allocation Factor for incremental capacity for customers would be in the range of $250 - $350 per m3/hour. By targeting this range, Enbridge Gas is trying to ensure the Project is economic for customers. This allocation will address the facilities needed to serve the area shown on the attached map (page 3). This allocation does not include costs that are required to serve each specific customer such as new facilities built at the customer’s site. The customer allocation and any customer specific service costs will be subject to an economic review based on OEB approved guidelines.
Enbridge Gas will consider the size and location of all requests for new capacity in designing the optimal facilities. If insufficient customer interest or required government funding is not forthcoming, the Project is unlikely to 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
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 13, 2020.