Enbridge Gas Distribution Inc. (TSX:ENB) has been granted leave to build natural gas distribution line to supply the Georgian Bay area by Ontario's energy regulator.

The Ontario Energy Board said it would allow the project to go forward. It involves building about 20 kilometres of pipeline in Barrie, Ont., the township of Springwater and in the county of Simcoe, and is "required to support load growth in the Georgian Bay area," OEB said.

The board also said it was satisfied that the proposed environmental mitigation and monitoring activities addressed the environmental concerns.

The Ontario Energy Board regulates the province's electricity and natural gas sectors.

Enbridge Gas Distribution is wholly owned by Enbridge Inc., one of Canada's biggest pipeline companies.

On the TSX Wednesday, Enbridge shares traded down 23 cents at $44.97.