Ontario is preparing the ground for a possible new round of natural gas expansion. In a letter dated August 10, 2026, Minister of Energy and Mines Stephen Lecce, co-signed by Associate Minister Sam Oosterhoff, directed the Ontario Energy Board (OEB) to examine and report on criteria for a potential third intake of the Natural Gas Expansion Program (NGEP). For furnace contractors, new gas connections in communities that lacked them have historically meant a wave of conversions and new furnace installs.
What the letter asks
The direct answer: the OEB must recommend how future expansion projects should be judged, by January 15, 2027.
The minister used his authority under section 35 of the Ontario Energy Board Act, 1998 to require the report. The letter frames it as preparation for a third intake "should additional funding be available," so no money has been committed.
The OEB is asked to identify factors relevant to whether projects can be substantially completed as proposed. The letter lists:
- feasibility and implementation readiness
- timely and cost-effective delivery
- customer and community benefits
- economic opportunities and impacts
- support for commercial, industrial and agricultural growth in rural, northern and Indigenous communities
The government says it intends to target support at projects that would be considered uneconomic under existing policies but could deliver those benefits.
What the program has done so far
NGEP supports projects that extend natural gas distribution to new customers, or add capacity for existing ones, where they would not normally be financially feasible. The letter says the first two phases committed funding to projects that gave 17,000 customers access to natural gas.
The letter also ties the program to Ontario's integrated energy plan, Energy for Generations, and its Natural Gas Policy Statement, which it describes as safeguarding access to natural gas and other fuels customers choose for heating, industry and agriculture.
Timeline
| Date | Step |
|---|---|
| August 10, 2026 | Minister directs the OEB to report on criteria |
| January 15, 2027 | OEB's recommended criteria due to the Ministry |
| After that | Government decides on the design of any future intake |
The letter says the OEB's advice will be considered along with other factors.
Contractor analysis: what gas expansion means for furnace companies
This section is FurnaceNews.ca analysis, not part of the ministry letter.
New mains create new furnace customers. When gas arrives in a community that relied on oil, propane or electric heat, many households look at switching. That means furnace installs, venting work, water heater changes and, often, financing questions. Contractors near past expansion areas know the pattern.
Nothing is funded yet. It would be misleading to tell homeowners that gas is "coming" to their town on the strength of this letter. The accurate statement is that the province has asked the regulator for criteria for a possible future round.
Early preparation is cheap. If your service area includes rural or northern communities without gas, now is the time to note which ones, follow local council discussions and keep an eye on the OEB. If an intake opens and projects are approved, being the known local furnace company before the trenches are dug is a real advantage.
Plan the content, not the ads. Before any project is approved, ads would be premature. A dated explainer page on how gas expansion works in Ontario, with a link to the OEB, is useful and safe. Our rate-change and rebate content service builds those pages, and our Ontario coverage page summarises the province's regulators, including TSSA for fuels work.
Remember the competing offers. Ontario's rebate programs also fund heat pumps. In a newly connected community, homeowners will compare a gas furnace, a heat pump and a hybrid. Contractors who can present all three honestly will be best placed; see our dual-fuel campaign service.
What to watch
The OEB's report is due January 15, 2027. Any future intake, funding amount and list of communities would come later. FurnaceNews.ca will report each step with its date and source in the newsroom.
Key facts at a glance
- Who: Ontario's Minister of Energy and Mines, with the Associate Minister of Energy-Intensive Industries.
- What: a directive under section 35 of the Ontario Energy Board Act, 1998.
- Ask: criteria for a potential third NGEP intake.
- Deadline: January 15, 2027.
- Funding: none committed in the letter.
FurnaceNews.ca is a news and marketing service for furnace contractors. We are not a gas utility, the OEB or a heating contractor.
Frequently asked questions
Has Ontario announced a third round of gas expansion funding?
No. The August 10, 2026 letter asks the OEB to examine and report on criteria for a potential future intake, should additional funding be made available. It does not commit funding.
When does the OEB have to report?
The letter asks the OEB to send its recommended criteria to the Ministry by January 15, 2027.
How many customers did earlier phases reach?
According to the letter, the first two phases of the program committed funding to expansion projects that gave 17,000 customers access to natural gas.
Which communities would be targeted?
The letter refers to rural, northern and Indigenous communities and to projects that would be uneconomic under existing policies but could offer community and economic benefits.