A FortisBC employee walks past a storage tank and delivery trucks at the existing FortisBC Tilbury LNG facility before the groundbreaking for an expansion project in Delta, B.C., on Tuesday October 21, 2014. THE CANADIAN PRESS/Darryl Dyck

FortisBC eyes expansions after inking deal to send LNG by container to China

The FortisBC shipments to China are to be delivered in 60 specialized shipping containers per week

FortisBC is considering further expansions to its liquefaction facility on the Fraser River near Vancouver after landing its first term contract to send Canadian LNG to China.

The utility company, which has operated its Tilbury LNG plant since 1971, said Tuesday it has signed a two-year contract to ship 53,000 tonnes per year of super-cooled gas by the summer of 2021 to Chinese LNG distributor Top Speed Energy Corp.

FortisBC’s recently completed $400-million expansion project took capacity from about 35,000 to 250,000 tonnes per year, allowing a facility that had been used mainly for natural gas storage to become a commercial LNG production plant, said Doug Stout, vice-president of market development and external relations.

“This plant allows us to serve the local marine and transportation markets as well as the smaller-scale export opportunities,” he said.

“We’re looking at further expansions both for this type of market and for the marine and truck transportation markets.”

He says the company is considering an expansion of similar size in the next couple of years, adding there’s room on site to eventually reach capacity of three to four million tonnes per year.

Marine demand for LNG fuel is expected to rise next January when the International Maritime Organization begins to enforce new emissions standards designed to curb pollution produced by ships burning high-sulfur heavy oil.

Small-scale shipments of liquefied natural gas are a growing component in the global LNG sector, especially when the customers are small or unconnected to a pipeline grid, said Alex Munton, Houston-based principal analyst, Americas LNG, for Wood Mackenzie.

“Fortis certainly seems to be developing something of a niche,” he said in an interview.

“There’s a market for this LNG. I mean, we see it in the Caribbean, ISO containers being shipped down to small island markets like Barbados and so forth. It is a means of serving a particular market.”

The FortisBC shipments to China are to be delivered in 60 specialized shipping containers per week.

The volumes, sufficient to heat about 30,000 average British Columbia households per year, will go to smaller commercial and industrial customers in China who don’t have access to natural gas, potentially displacing coal or fuel oil, said Stout.

The contract is modest compared to what’s planned for the Shell Canada-led LNG Canada facility at Kitimat, B.C., a $40-billion project approved last fall that is expected to produce about 14 million tonnes per year after it opens in 2023 or 2024.

“It’s a different ballgame, definitely, from what they’re doing,” said Stout.

His company estimates it would cost $3 billion to $4 billion to build up to three to four million tonnes per year, he said, adding that doesn’t include providing for the required increase in electricity to operate the plant, nor the additional natural gas supply and delivery.

FortisBC says it has been selling small shipments of LNG in China on a spot basis since 2017.

It is owned by St. John’s, N.L.-based Fortis Inc.

ALSO READ: Environmental assessment underway for proposed Delta LNG jetty

ALSO READ: B.C. man’s challenge of controversial LNG pipeline in hands of NEB

Dan Healing, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Former Burns Lake mayor gets two years for sexual assaults against minors

Banned from taking work involving young people for five years

Prince Rupert man who killed foster parents in 2017 receives three-year sentence

A Prince Rupert man convicted in the deaths of his foster parents… Continue reading

Rampage exercise their demons

Offence goes to work as Prince Rupert scores 6-3 win to even season series with Kitimat

Saved by his dog, rescued by the kindness of Kitimatians

Al Earl loses everything in a house fire

VIDEO: Rockslide closes Highway 93 in Fairmont Hot Springs

Geotechnical team called in to do an assessment after rocks fell from hoodoos

Thieving gun-toting Santa breaks into Princeton restaurant, makes icing sugar sandwich

The suspect allegedly made a sandwich of icing sugar and ham

Infants should be tested for autism if older siblings are diagnosed, Canadian study suggests

Blood test for infants with sibling who’s been diagnosed would get information to families earlier

Province gives $4.93M boost to school-based gang prevention program

The funding will see the ‘Erase’ program expand from 12 to 16 communities

Half of shoppers say they have no holiday spending budget

B.C. consumers surveyed estimate they will spend $921 this season

Man killed in crash due to ‘absolutely treacherous’ conditions on Coquihalla

Winter means icy roads are dangerous and drivers should be careful, RCMP say

Bag of cocaine left in B.C. grocery store aisle

RCMP: ‘We sure would like to talk to’ person who left drugs behind

RCMP officer was justified using hose in rooftop standoff: B.C. watchdog

Police watchdog finds officers actions reasonable when man injured in 2018 incident

Cannabis ice cream? Province prepares for B.C. Bud edibles

Mike Farnworth’s special police unit takes down dispensaries

Most Read