Download the install manual for your heater. It will have diagrams that show where it can be vented. Do this before you buy it. I don't think that location is going to fly though.

Consider an entirely different plan: Look at a hybrid electric water heater. They are the least expensive way to heat water and they have no venting requirements. In addition, they will dehumidify your basement (looks like you have a basement).

They do make a small amount of noise (probably less than a power vent).

In the US there are often large rebates from power companies to switch to these.

Hybrid also plays very well with PV solar.

Here's a hybrid electric heater example.

electric is not a viable option here we have some of the highest hydro rates in north America

Is the plan to install a power vent in order to eliminate a chimney flue?

yes the chimney goes right through my kitchen we are going to redo the kitchen and want the chimney gone

As part of your kitchen renovation, it may be possible to eliminate the chimney and install a new vent just for the hot water heart. You likely would need a 4 inch B vent with a 1 inch clearance. You could bump out a wall or build a chase to hide it.

Another option is a tankless hot water heater. You would still need to exhaust vent to the outside of the house. However you may be able to move the location to a more convenient spot of the outside wall penetration. The draw back is you may have to increase the size of the gas piping.

A condensing gas water heater that allows you to vent through 2" PVC will give you the most options including potentially venting through the roof.

Gas tankless doesn't always make sense - but it can when it solves a venting problem.

The instructions I found say 4 feet from the gas meter.

yes but my meter vents about 12 ft down the house gas company put that in 10 years ago when i had the direct vent furnace installed so Im thinking the 4ft doesn't matter in my case as the vent is far away

So, you researched the answer, didn't like what it said, and are making up your own rules.

That's not a good plan with venting. It can get you red-tagged or it can get you dead. Do venting by the book and don't substitute your own thoughts/judgement for what's printed on paper unless you get a code inspector to green-light it for you.

I'm sorry you purchased a water heater without mapping out the venting ahead of time. But don't compound the error by moving forward with venting you know (based on documentation) isn't permitted. Don't look for permission to do what you want to do off an internet forum when you know it's not right.

Check the exact code wording. There is a difference between the gas regulator and the gas regulator vent terminus. What may be specified by code is the required separation distance between the gas regulator vent terminus and possible ignition sources. This would agree with your picture and is probably why the regulator vent was extended years ago when the direct vent vent furnace was installed. You may be fine locating the power vent exhaust where you want, but as always, check with the local officials having jurisdiction to be sure.

The tank manual says 3ft from gas regulator vent outlet the gas company website says 3ft from gas service regulator vent opening which in my case was extended 12 ft down the house so this is why I believe I can vent where I want to. Is this correct or not?

The gas regulator vent outlet (terminus) in the manual is the same thing as the gas company service regulator vent opening (terminus). Neither callout is where the regulator itself is located, they are referring to the location where the (piping from the) regulator would dump gas to the atmosphere. In my book, 12 feet >> 3 feet, so you should be fine.

Tips on combustion air supply and ventilation-

Proper clearances from the water heater must be maintained to allow unobstructed airflow to the unit.

To vent a gas water heater properly, provide openings for the air to enter and exit the area.

Openings for venting the gas heater should have the required size, per water heating manufacturer instructions and codes.

The fresh air should not be taken from areas where the negative pressure is, from areas where devices like exhaust fans, furnace, dryers or fireplaces are located.

The fresh air should be free of corrosive elements and flammable vapors. The warranty might be voided.

The venting pipe should be the same size as the openings.

Do not block with the insulation blanket or any other obstruction the base of the heater and draft hood, so that the air can enter the heater chamber.

https://www.air-conditioning-heating.org/

Wow, Thanks @Marc Well for spamming the thread with totally useless information designed to get people to click on your website. You've been flagged.