British Columbia says yes to $1.14 billion LNG storage expansion

October 29, 2025, by Melisa Cavcic

Canadian natural gas and energy utility FortisBC has secured the endorsement from the British Columbia Utilities Commission (BCUC), an independent regulatory body regulating BC’s energy utilities, basic automobile insurance rates, and intra-provincial pipeline rates, for the proposed storage expansion of its existing liquefied natural gas (LNG) facility on Canada’s Tilbury Island to safeguard the energy security of British Columbia and strengthen its gas supply chain.

Artistic rendering of the proposed Tilbury Phase 2 LNG expansion project; Source: FortisBC

Following a public review process that included submissions from eight interveners and feedback from individual British Columbians, the BCUC has now approved FortisBC’s application for the Tilbury LNG storage expansion project, deeming it to be in the public interest.

Roger Dall’Antonia, President and CEO of FortisBC, commented: “Projects like the Tilbury LNG storage expansion project are essential to strengthen the resiliency of B.C.’s energy system. This investment is critical to FortisBC’s efforts to continue to play an important role in B.C.’s energy future.”

This project includes constructing a new, larger LNG storage tank at the facility in Delta to replace an existing 56-year-old storage tank that has reached the end of its service life.

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The regulator’s decision argues that replacing the existing LNG storage tank is necessary for FortisBC to continue to meet customers’ increasing energy demands on peak days. The BCUC also found that building a larger capacity tank will tackle the resiliency risk of the firm’s natural gas delivery system.

While the company currently gets 85% of the natural gas it delivers to customers from a single third-party pipeline, the expanded LNG storage will help mitigate the risk of supply disruption by providing back-up storage of natural gas.

With two-thirds of the new storage tank to be set aside as a reserve in the event of unexpected supply interruptions, the remaining volume will be used to meet customers’ energy needs on high-demand days.

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According to FortisBC, the new storage tank will be used exclusively to store and supply natural gas to customers and not to provide LNG for marine fueling or LNG export. As a condition of approval, any future changes to the storage tank’s use will require further authorization.

Anticipated to be in service by 2030 at an estimated cost of $1.14 billion, the project will enable the delivery portion of customers’ rates to increase incrementally by an average of approximately 1.78% per year over the six-year construction period.

The new storage tank is expected to reduce the need for external gas storage and delivery, generating long-term cost savings for customers. Having found the project to be in the public interest, the BCUC issued FortisBC a Certificate of Public Convenience and Necessity for the Tilbury LNG storage expansion.

This comes after FortisBC received an environmental assessment certificate for the Tilbury Marine Jetty (TMJ), which is being developed with Seaspan Energy, followed by the government’s authorization for it to proceed. The project encapsulates the construction of a jetty on the south arm of the Fraser River, which will enable LNG bunkering vessels to refuel at the Port of Vancouver.

The Tilbury Phase 2 LNG expansion project, which includes the Tilbury LNG storage expansion project, continues progressing through its environmental assessment process. As the B.C. Environmental Assessment Office’s approval is required for the project to proceed, a decision is expected as early as 2026.