Union Gas will pump $250 million into its Dawn site starting this spring.
The utility has received approval from the Ontario Energy Board to move ahead with the massive expansion in Dawn-Euphemia.
The company is in the middle of a rapid expansion to take advantage of the natural gas being extracted through fracking in the US Midwest. Union Gas plans to build four new compressor stations and a network of pipeline through southern Ontario with a price tag of over $2 billion.
A quarter billion will be spent in Dawn-Euphemia. The compressor will be built on land already owned by Union Gas.
Officials have said it is about the same size as the compressors already on site, but because it is further away from the complex in a nearby field, more pipeline will be needed to connect it to the existing facility. Officials estimate that could be about 50 per cent of the cost of the project.
The company submitted its plans for the expansion from the Ontario Energy Board earlier this year and have been working with Dawn-Euphemia’s planners on the zoning of the property. On Dec. 15, the OEB approved the proposal.
Union Gas Spokesperson Andrea Stass says construction could begin this spring.
The new unit could be in service by 2017 and will generate about $368,000 in new tax revenue for the municipality.