Tilbury LNG expansion moves forward after provincial exemption

FortisBC has cleared a major regulatory hurdle for a proposed expansion of its Tilbury liquefied natural gas facility in Delta after the B.C. government exempted the project from obtaining a Certificate of Public Convenience and Necessity from the BC Utilities Commission.

The Phase 1B project is estimated to cost more than $2 billion. It still requires other permits and approvals before construction can begin; work could start in mid-2027 and the expanded facility could enter service in 2031.

The project would increase LNG production at Tilbury Island, with much of the added supply intended for vessels travelling through the Port of Vancouver, along the West Coast and across the Pacific. FortisBC already supplies LNG to BC Ferries and Seaspan Ferries.

The provincial changes also establish a framework for the Musqueam Indian Band to acquire an ownership interest through a partnership with FortisBC. Musqueam Chief Wayne Sparrow said the arrangement reflects the importance of First Nations having ownership roles in projects on their territories.

The province estimates construction would add more than $800 million to B.C.’s GDP and support an average of about 1,100 jobs a year over four years. It says the project could generate about $260 million in tax revenue and up to $20 million annually in natural-gas royalties once operational.

FortisBC must file annual performance reports with the utilities commission for its Phase 1A and 1B expansions. A separate Phase 2 proposal, including another storage tank, remains under environmental assessment, with a provincial decision anticipated later in 2026.