The controversial Greenfield South Power gas plant, originally planned for  Mississauga, is being relocated to the Sarnia area.

Ontario’s Minister of Energy Chris Bentley said an agreement was reached, Tuesday, to relocate the 300 megawatt plant to the Ontario Power Generation’s Lambton generating station site.

“We have fulfilled the commitment we made to the residents of Mississauga and Etobicoke,” Bentley told reporters. “We have found a resolution – a good site in a good location – so that the people of Ontario can benefit from the power this facility will provide.”

“It became very clear in the months leading up to September that a gas plant in Mississauga was not the appropriate location. The residents were expressing themselves in a very strong way,” he added.

“The agreement was concluded [Monday] between the Ontario Power Authority and Greenfield South Power. I expect there will be discussion in the future about the allocation of those costs.”

The move will cost $180 million. However, the construction of the plant is expected to provide up to 200 jobs over the next two years.

The Liberals planned to scrap the construction of the plant as part of their promise ahead of the provincial election in October 2011.

The Ontario government also cancelled plans for a similar plant in Oakville in 2010.