BCUC Grants Approval for FortisBC’s Tilbury LNG Storage Expansion Project

BCUC Grants Approval for FortisBC’s Tilbury LNG Storage Expansion Project

William Faulkner 28-Oct-2025

BCUC approves FortisBC’s $1.14 billion Tilbury LNG expansion, ensuring reliable gas supply, improved resilience, and long-term customer cost savings by 2030.

On October 27, 2025, the British Columbia Utilities Commission (BCUC) officially approved FortisBC Energy Inc.’s (FortisBC) application for the Tilbury Liquefied Natural Gas (LNG) Storage Expansion Project. This marks a major milestone for FortisBC’s Tilbury facility in Delta, British Columbia, as the company moves forward with plans to enhance its LNG storage capabilities to ensure a more reliable and resilient natural gas supply for customers.

The approved project entails the construction of a new, larger LNG storage tank to replace an aging 56-year-old tank that has reached the end of its operational life. Through an extensive and transparent public review process, which included input from eight registered interveners and individual submissions from British Columbians, the BCUC concluded that the expansion aligns with the public interest and serves a critical role in maintaining energy reliability for the province.

In its decision, the Commission recognized that replacing the outdated storage tank is essential for FortisBC to continue meeting rising customer energy demands, especially during peak consumption periods. The new tank will also significantly improve system resiliency. At present, approximately 85% of FortisBC’s natural gas supply depends on a single third-party pipeline—creating a potential vulnerability to disruptions. The expanded storage capacity will serve as a safeguard, ensuring a reliable backup supply in the event of pipeline interruptions or supply shortages.

According to FortisBC, two-thirds of the new LNG tank’s total capacity will be reserved specifically as an emergency backup to mitigate supply risks, while the remaining portion will help meet energy demand during periods of high usage. Importantly, the company confirmed that the tank’s purpose is strictly for storing and supplying natural gas to local customers. It will not be used for LNG exports or marine fueling. Any future proposal to modify the tank’s function will require separate regulatory approval.

The Tilbury LNG Storage Expansion Project carries an estimated cost of $1.14 billion and is slated to be operational by 2030. During the six-year construction phase, FortisBC customers will see a gradual rate increase, averaging about 1.78% annually in the delivery component of their bills. However, once completed, the expanded facility is expected to reduce reliance on external gas storage and transport services, leading to long-term operational efficiencies and cost benefits for customers.

After determining that the project meets the criteria of public necessity and convenience, the BCUC granted FortisBC the Certificate of Public Convenience and Necessity (CPCN) required under Section 45 of the Utilities Commission Act. This approval followed the Commission’s earlier directive for FortisBC to provide additional data regarding equipment condition and supply reliability, ensuring that the decision was based on thorough technical and safety evaluation.

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Natural Gas

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