The government of British Columbia will provide regulatory support for the proposed expansion at FortisBC’s Tilbury LNG facility in Delta, as well as the proposed upgrades to the company’s natural gas transmission infrastructure in the Lower Mainland.
Tilbury LNG expansion
FortisBC is proposing to invest an additional CAN$400 million to further increase natural gas liquefaction capacity at its Tilbury LNG facility in Delta to meet future domestic and export demands from LNG customers.
The company also intends to advance planned upgrades to its existing natural gas transmission infrastructure in the Lower Mainland to accommodate higher demand for natural gas arising from the development of the Tilbury Island facility, and will construct and operate the new Eagle Mountain pipeline to transport natural gas from the Eagle Mountain compressor in Coquitlam to the proposed Woodfibre LNG facility in Squamish.
To provide certainty that will support final investment decisions (FIDs) by LNG proponents and customers, the government has exempted these proposed projects from the requirement for a certificate of public convenience and necessity review. FortisBC will still be required to obtain all necessary environmental approvals and other permits, as well as consult with the public and First Nations.
The government has also introduced a natural gas transportation tariff that establishes the rate for LNG proponents and customers, including Woodfibre LNG. The rate ensures that large industrial proponents will cover the full cost of the new investment and operational costs to serve them in addition to a portion of the costs of the existing system. These customers will also contribute to lower delivery costs for other FortisBC customers due to the large quantities of natural gas moving through the pipeline system.
Bill Bennett, Minister of Energy and Mines
“Our goal is to create jobs and economic development by making it easier for LNG proponents and other natural gas customers in the Lower Mainland to access and use natural gas. FortisBC’s proposed capital investments will help meet the increased demand for natural gas and LNG in the Lower Mainland and provide additional certainty to support final investment decisions by LNG proponents.”
Rich Coleman, Minister of Natural Gas Development
“The Province is taking the steps needed to establish a liquefied natural gas sector in British Columbia. FortisBC’s proposed investment in their pipeline system will serve new LNG facilities and will help transport B.C.’s natural gas to global markets.”
John Walker, Executive VP, Western Canadian Operations, Fortis Inc.
“Last year Fortis Inc. subsidiaries in British Columbia invested more than CAN$500 million in energy infrastructure with a substantial focus on LNG and natural gas pipeline projects and are expecting to exceed that amount in 2015. The Province’s regulatory support maintains robust environmental reviews and commitment to ongoing public and First Nations consultation while enabling us to provide potential industrial customers with greater certainty around project development and delivery.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquefaction/26012015/government-supports-tilbury-lng-expansion-113/