Penetangore Regional Economic Development Corporation (PREDC)

Penetangore Regional Economic Development Corporation (PREDC)

May 30, 2012 05:00 ET

Optimistic Municipalities and Industry Continue Their Rally for Natural Gas

KINCARDINE, ONTARIO--(Marketwire - May 30, 2012) - During a recently held joint closed session the Councils of the municipalities of Arran-Elderslie, Township of Huron-Kinloss and Kincardine, met with Union Gas Ltd. to discuss the released natural gas study for the proposed 77 kilometers of 6" to 8" natural gas pipeline project.

Although the projected costs increased from initial estimates due to an increase of 6000 to 8000 estimated customers, the three councils and local industries agree the long term economics clearly outweigh the projected costs. The earlier estimates were based on a 2005 analysis, and as well, rising material and labour costs have contributed to the revised cost estimate.

Facilitated by the Penetangore Regional Economic Development Corporation (PREDC), the natural gas committee that includes representatives of the three partnering municipalities and industry is weighing a number of finance, funding and partnership models to move this project forward. The committee is now seeking expressions of interest from potential natural gas project partners that may be interested in participating in this project.

The three municipal Councils have passed resolutions supporting the continued efforts of the natural gas committee to bring this project to successful completion.

"As soon as the projected costing of the project was released we immediately worked out rough calculations to determine whether we should proceed. It didn't take us long to reaffirm the importance of this project to both our constituents and local industry," said Larry Kraemer, Mayor, Kincardine.

"We are more determined than ever to carry forward this project to fruition. While we recognize that this is a very costly project, we are confident that it will generate more value in a short period of time than any other economic development project in this area in many years. When you think of savings to constituents estimated in the millions of dollars, it is unthinkable not to proceed to put our communities on an even footing with others in this province," said Mense "Jim" Prenger, Chair, PREDC and Chairperson of the Natural Gas Committee.

"It is estimated that the region spends in excess of 3 to 4 M$ per month burning propane, furnace fuel, bunker fuel, or electricity to heat their homes, businesses and for industrial processes versus lower cost, cleaner and abundant natural gas. Business cannot compete when their energy alternative is 5 to 6 times greater than their competitors that are connected to efficient natural gas supply," said John Creighton, Managing Director, Logistics, Greenfield Ethanol.

Based in Kincardine, the Penetangore Regional Economic Development Corporation (PREDC) is facilitating the development of this project.

"WANTED: Natural Gas"

Contact Information

  • Penetangore Regional Economic Development Corporation
    Mense (Jim) Prenger
    Toll free: 1-855-396-7711

    Penetangore Regional Economic Development Corporation
    Gerry Taylor
    PMP, Executive Director
    Toll free: 1-855-396-7711