Canada’s FortisBC granted key approval for Tilbury LNG expansion

Canadian natural gas utility Fortis BC has received the go ahead from British Columbia’s provincial government to proceed the project following the exemption of the requirement for a Certificate of Public Convenience and Necessity, local media Global News reported on July 24.

“The expansion of the Tilbury LNG Facility is an investment in B.C.’s future, creating jobs, growing our economy and helping reduce emissions through an investment of more than $2 billion,” British Columbia’s Minister of Energy and Climate Solutions, Adrian Dix said in a statement.

“By helping move this project forward, we’re also creating an opportunity for Musqueam Indian Band to become an equity partner, advancing economic reconciliation while supporting a cleaner alternative to traditional marine fuels like diesel,” Dix added.

Expansion Phase 1B will increase the Tilbury LNG plant’s capacity to produce LNG significantly. The plant located 10 km south of Vancouver was built in 1971 and currently has a liquefaction capacity of 120,000 cubic metres per day. Upon completion of Phase 1B, the LNG capacity will rise by up to 650,000 tonnes per year (tpy). 

The expansion will also help meet the increasing need for LNG fuelling service at Vancouver’s port. The project remains subject to receiving all other required regulatory approvals and permits. Government officials believe the project could start construction by as early as mid-2027 with the facility beginning operation in early 2031.

Phase 2 of the project is still under consideration. Expansion to Phase 2 would add a further 2.5 mn tpy of capacity, along with a new storage tank of up to 142,400 cubic metres to provide back-up energy supply. 

The federal and provincial government are both to elevate the project to an export terminal, which would seek to capitalise on its ideal location in western Canada which offers fast direct delivery to key East Asian LNG buyers Japan and South Korea.