Construction of a 4,500 kilometre crude oil pipeline from Alberta to New Brunswick is slated to begin in 2016, but Union Gas officials are warning this could have an impact on rates.

A section of existing natural gas lines in Ontario will need to be converted to carry oil and new natural gas lines will be built.

But Union Gas is sounding the alarm that the new lines will be insufficient for the needs of Ontario and Quebec.

Union Gas officials say customers could be footing the bill.

Union Gas would actually like to support the project, but company reps say they disagree with about 10 per cent of it.

That 10 per cent of the project falls in Ontario and Union Gas worries if the project goes ahead as planned, it could have gas customers seeing red.

Trans Canada Pipelines Ltd is investing $12 billion to build the new oil pipeline.

The president of development for TransCanada Alex Pourbaix says there's lots of misinformation about how the new energy east pipeline could affect the price of natural gas.

"There will not be one gas consumer in Ontario or Quebec that will not have adequate access to gas transportation, and they will have it at a cost that is the same, or lower they currently enjoy had energies not gone ahead," said Pourbaix on a video on energyeastpipeline.com.

Essex County Warden Tom Bain says the hope is that the impact on local customers here is zero.

Union Gas is making a presentation to Essex County council Wednesday night, expressing their concerns over the project.

"Our concern is that the pipeline is going to need to be bigger, considerably more expensive, and the additional cost of that risk is going to be borne by Ontario consumers, and we don't think that's fair," says Tim Kennedy, VP government and aboriginal affairs for Union Gas.

That's because under the current proposal, a new gas pipeline needs to be built between North Bay and Ottawa. That pipeline will be smaller than the current system.

"We don't believe it's big enough. We believe it will be more expensive," says Kennedy.

If that happens, Union Gas says those upgrade costs will be passed onto customers.

“For homeowners, what that will look like is up to $50 a year depending on capacity increase, for 50 years," says Kennedy.

The increase for schools could be $500 to $1000, for hospitals $3,000 to $25,000 per year and industry $250,000 to $500,000 per year.

“That affects future building," says Bain.

Bain says council will put forward a resolution to the energy board to ensure local customers aren't burdened with extra costs.

“It's hard to understand why we would have to help pay for a new line going to in when the one currently there is sufficient for current and future needs," says Bain.

The proposal will go before the National Energy Board this summer.  

Meantime, Union Gas just recommended an 11 to 20 per cent reduction in rates starting in April. If approved, it would take effect on April 1.