Construction starting on $358 million natural gas project in southwestern Ontario

The Ontario government is announcing the start of construction by Enbridge Gas on its $358 million Panhandle Regional Expansion Project in the southwest region.

Premier Doug Ford was in Leamington on Friday to announce details.

The project is expected to secure about 7,000 jobs, enable $4.5 billion of investment opportunities in the province.

“Our government is continuing to secure the reliable and affordable energy that is critical to our plan to rebuild Ontario’s economy, keep costs down for families and build homes across the province,” said Ford. “This project will help deliver that reliable energy supply and, in the process, create good-paying jobs, support our world-leading greenhouse sector and power Ontario’s economic growth for many years to come.”

This project will lead to the construction of approximately 19 kilometers of new pipeline that will parallel the existing pipeline and increase the capacity of Enbridge’s Panhandle Transmission System. Government officials said the pipeline expansion is a vital investment in energy infrastructure that will encourage economic development in Southwestern Ontario and support the growth of the region’s vibrant world-leading greenhouse industry.

“A continued priority for our government is delivering affordable energy to Ontario families,” said Stephen Lecce, Minister of Energy and Electrification. "Our population is growing, and the economy is electrifying, which underscores why our government is determined to generate more clean and reliable energy to drive our growth.”

The new pipeline will also help supply the electricity generation needed to meet the province’s growing energy demands, due to increasing electrification, strong population and economic growth. Access to a reliable and affordable electricity supply is increasingly a key priority for companies, particularly those investing in large-scale manufacturing projects.

“This new investment in natural gas energy expansion will enable the rapid continued growth of our world-leading greenhouse industry in Southwestern Ontario and strengthen the province’s agri-food sector,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries.

The Panhandle Regional Expansion Project is part of Ontario’s efforts to meet the province’s growing energy demands.

"Through the expansion of the Panhandle system and increased access to energy at the Enbridge Gas Dawn Hub, we are proud to support the region's growth by providing reliable and affordable energy to residential, commercial, and industrial customers,” said Michele Harradence, president of Enbridge Gas distribution and storage. “This major natural gas project reflects our dedication to serving the community and powering the progress of Ontario's southwest region."

In May 2024, the Ontario Energy Board (OEB) granted Enbridge Gas leave to construct for the Panhandle Regional Expansion Project, permitting the project to proceed.

The project has a targeted in-service date of Nov. 1, 2024, with additional construction related to the project to be completed in 2025.

The Panhandle Transmission System currently serves residential, commercial, industrial, greenhouse and power generation customers in Dawn-Euphemia, St. Clair, Chatham-Kent, Windsor, Lakeshore, Leamington, Kingsville, Essex, Amherstburg, LaSalle, and Tecumseh.