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FortisBC finalises LNG supply agreement for BC Ferries

LNG Industry,

FortisBC announced that it will provide up to 300 000 GJ of LNG per year for the next 10 years, to help fuel BC Ferries’ three new intermediate class ferries.

The LNG will be supplied from FortisBC's Tilbury facility located in Delta, which recently broke ground on a CAN$400 million expansion and the Mt. Hayes facility, located on Vancouver Island. The Tilbury expansion will add 1.1 million GJ of LNG storage and approximately 34 000 GJ of liquefaction capacity per day.

CO2 reduction

The use of LNG by BC Ferries will result in the reduction of an estimated 9000 t of carbon dioxide equivalent per year, the same as taking 1900 passenger vehicles off the road annually.

Doug Stout, FortisBC VP of Market Development and External Relations, said: "BC Ferries has taken the lead as one of the first passenger ferry services in the country to use LNG. This abundant, made-in-B.C. energy source can reduce greenhouse gas emissions between 15 – 25%, providing cleaner air for British Columbians."

Dual-fuel capability

Announced by BC Ferries in 2014, the vessels are being built with dual-fuel capability, and will be replacing the Queen of Burnaby (Comox-Powell River) and Queen of Nanaimo (Tsawwassen-Southern Gulf Islands). The third vessel will augment peak and shoulder season service on the Southern Gulf Islands route, as well as provide refit relief around the fleet.

"We are pleased to collaborate with FortisBC, a safety leader in gas supply, for our new LNG vessels," added Mark Wilson, BC Ferries' VP - Engineering. "The use of LNG has both financial and environmental benefits and this contract will ensure we have a long-term, secure supply to power the new intermediate class vessels."

Transportation market

FortisBC has also provided CAN$6 million in incentive funding toward the three new vessels.

"We're working with FortisBC to establish the LNG transportation fuel market as part of our strategy to build and expand the province's LNG industry," concluded Bill Bennett, Minister of Energy and Mines. "Running ferries on LNG will reduce transportation costs, reduce greenhouse gas emissions, and grow the market for our abundant natural gas reserves."

Adapted from press release by Katie Woodward

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