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ARTICLE · 09 MARCH 2020

OEB Issues Decision On Proposal By Municipalities To Form New Natural Gas Distributor

On February 27, 2020, the Ontario Energy Board issued a decision in respect of a proposal for a new natural gas distribution company to distribute gas in municipalities located on the north shore...

CanadaEnergy and Natural Resources

On February 27, 2020, the Ontario Energy Board issued a decision in respect of a proposal for a new natural gas distribution company to distribute gas in municipalities located on the north shore of Lake Superior between Nipigon and Sault Ste. Marie.

In the OEB proceeding, it was proposed that the new utility would acquire its gas supply through a liquefied natural gas (LNG) supply contract with Nipigon LNG Limited Partnership (NLNG). LNG would be trucked from an LNG facility to the municipalities and stored locally in LNG depots. NLNG would be responsible for the LNG facility, the trucking of LNG and the construction of LNG depots and these “upstream elements” were not part of the application to the OEB. The new utility would distribute re-gasified LNG through separate pipeline systems in the municipalities. A proposed LNG supply contract between the utility and NLNG was within the scope of the application.

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