Natural Gas Project

Natural Gas Pipeline Project FAQ's

1. How long have we needed natural gas in the area and why don’t we have it now?
2. How long will it take to bring gas to our area and what’s involved in doing so?
3. How large of an area will natural gas project serve?
4. What are the residential preliminary findings of the study that is currently underway?
5. What are the commercial preliminary findings of the study that is currently underway?
6. How important is natural gas to industry, business and residents?
7. What are your next steps?

1. How long have we needed natural gas in the area and why don’t we have it now?

There have been a couple of past attempts to secure natural gas within our area.  The past attempts failed as there was not a strong enough community desire by industry and community leaders to pursue natural gas.  In addition, the cost spread (spark spread) between natural gas against other sources of energy is much wider today than it was back in the mid 90’s.

2. How long will it take to bring gas to our area and what’s involved in doing so?

Our Natural Gas Project Team has commissioned Union Gas Ltd. to develop a study to determine the supply of natural gas into our area and establish an understanding of a sustainable customer base.  So far, the early indicators of the study are showing strong signs of supply and demand for natural gas.  Once the study is finalized in January 2012, it will be necessary to begin the Environmental Assessment process to satisfy the requirement of the Ontario Energy Board.  We foresee customers acquiring natural gas to begin sometime in 2013.

3. How large of an area will natural gas project serve?

The scope of this project includes the Municipalities of Arran-Elderslie, Huron-Kinloss and Kincardine.  The success of this project will provide a supply to the largest underserviced area located within southwestern Ontario.  Approximately 80 kilometers of gas pipeline will be provided to approximately 6000 customers.

4. What are the residential preliminary findings of the study that is currently underway?

Union Gas had telephone interviews conducted by Ipsos-Reid, with300 randomly-selected homeowners in the target communities, yielding a margin of +/-5.5% at 95% confidence level. 

- Overall, 66% of all respondents said they are likely to convert their home-heating system and/or water heater to natural gas. Of those, 78% are likely to convert within the first two years, while 49% would do so in the first 12 months.
- 67% of respondents said they would likely convert their home-heating system to natural gas.
- In the Kincardine area, 31% use oil-forced or electric-forced air for home heating, while 25% use electric baseboard or boiler, and 20% use propane-forced air. 
- 58% of respondents said they are likely to convert their water heater to natural gas
- 81% of water heaters are currently powered by electricity, while 10% are powered by propane.

5. What are the commercial preliminary findings of the study that is currently underway?
A total of 174 interviews were conducted by a third party supplier, Ipsos-Reid, with businesses in the target communities, yielding a 6.7% margin of error at 95% confidence level. The fielding period for the commercial survey was from August 23rd to September 9th, 2011.
- Overall, 81% of all respondents stated that they are likely to convert their heating system and/or water heater to natural gas.
- 50% of the businesses in Kincardine et al use a forced air furnace for heating. 43% of forced air furnaces are powered by propane.
- 73% of all respondents indicated that they would likely convert their heating system to natural gas. 85% would do so within the first 2 years; 61% within first 12 months
- 60% of water heaters are powered by electricity; 25% is powered by propane.
- 74% of all respondents indicated that they would likely convert their water heater to natural gas. 87% stated they would likely convert within the first 2 years; 67% within first 12 months.
- 53% of all respondents stated that they have cooking equipment on-site, the cooking equipment’s are powered by electricity (71%) and propane (29%). 62% of businesses that have cooking equipment on site are likely to convert cooking equipment to natural gas.
- Respondents who stated that they are unlikely to convert cited cost and having recently installed new heating equipment as major reasons.
- On average, the commercial buildings in Kincardine and surrounding communities are about 53 years old.

6. How important is natural gas to industry, business and residents?

Natural gas is important for major industry requiring large sources of heat or fuel to produce their products and services.  Not having natural gas places local industry and business at a significant disadvantage to their competitors who do have natural gas in other communities.   The residents are currently faced with rising heating costs and providing natural gas will help residents save more money and provide additional disposable income.  Bringing natural gas to the area is seen as providing both an economic boost and a means to retain industry located within our area.

What lobby efforts are underway and how well received is natural gas with upper levels of government?

The Mayors of the three partnering municipalities have been meeting with political members of upper tier government and the appropriate ministries.  The Penetangore Regional Economic Development Corporation (PREDC) is facilitating this project and has generated a number of communications, marketing and planning activities to help support the goal of the project.  There has been strong support received by the various levels of government, local industry and area residents.

7. What are your next steps?

The project team comprising of the three local Mayors, industry stakeholders and the PREDC will continue their lobby efforts and develop strategies to maintain project momentum.  The project team will be participating with developing a financial plan and securing financial assistance from various levels of government.  A considerable amount of effort will also be required to satisfy the requirements of the Ontario Energy Board through the Environment Assessment process.

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