Expansion targets include northern and Indigenous communities.

QUEEN'S PARK — The Ontario government says it's working to further expand access to natural gas throughout rural, northern and Indigenous communities in the province.

It's ordered the Ontario Energy Board to study potential projects and to deliver a report to the government by August 2020.

Under a program announced in 2018, a $1/mo charge on existing natural gas customers provides funding for projects that otherwise would be considered uneconomic.

Four initiatives are currently underway, all in southern Ontario.

Five other projects have been approved.

The government estimates the average residential customer who switches to natural gas from oil, propane or electric heating can save from $800 to $2,500 a year.

In an announcement Tuesday, it said it intends to spend $130 million to support new expansion projects.

Energy Minister Greg Rickford has told the OEB to consider the number of customers each proponent proposes to serve, the amount of financial support required, the proposed construction date, and whether the project is supported by band councils or local governments.

The minister wants the board to issue a call for information from interested parties early in the new year.