B.C.’s energy minister signed an order on Friday to allow the $2-billion expansion of a natural gas refuelling terminal in Delta to go ahead without the normal approvals from the B.C. Utilities Commission.
The move, executed through a cabinet order, will exempt FortisBC’s Tilbury Liquefied Natural Gas facility from needing a B.C. Utilities Commission Certificate of Public Convenience and Necessity for its Phase 1B expansion.
This certificate process is meant to allow the Utilities Commission to consider whether a public utility’s new energy supply project is in the public interest.
Tilbury provides gas from vessels ranging from ferries to cruise ships. Energy and Climate Solutions Minister Adrian Dix deems the project to be in the public interest because it brings in new investment, while decreasing emissions from dirtier fuels, such as diesel.
He also says the expansion plans have already gone through extensive environmental assessment, and by providing cleaner fuels, it has inherent environmental benefit.
“This project has been significantly reviewed,” Dix said Friday. “It has revealed economic and environmental interests. So we think that advancing the project now makes sense.”
This deal also provides an equity ownership stake for the Musqueam Indian Band.
Promoting this expansion represents a pivot for some in the B.C. NDP. Housing and Municipal Affairs Minister Christine Boyle opposed the expansion as a Vancouver city councillor.
“Vancouver Council just voted to oppose the Tilbury LNG expansion,” she wrote on social media in 2021. “We have long run out of time to consider LNG a transition fuel.”
B.C. Greens MLA Jeremy Valeriote says the move to circumvent the Utilities Commission risks taxpayer money while subverting independent oversight.
“This decision exposes the contradiction within the B.C. NDP itself, as it undermines and obfuscates its environmental commitments,” Valeriote said in a news release. “It isn’t just at odds with the B.C. Greens, it contradicts the viewpoints of Premier [David] Eby’s own caucus.”
The certificate exemption only applies to the first of Tilbury’s two planned expansions. Fortis also plans a second expansion to add another large tank and liquefaction capacity.
The storage facility part of Phase 2 already has Utilities Commission approval, while the liquefaction part is still in the process of seeking approvals.
Phase 1 is also split into two parts. Phase 1A also included storage and added liquefaction capability, and was completed in 2018. Phase 1B involves building a marine jetty to provide more refuelling capacity for ships.
FortisBC CEO Roger Dall’Antonia explained that none of these projects aim to compete with larger export facilities such as LNG Canada.
“This expansion we’re doing right now that we’re announcing today is really targeted to build a fuel infrastructure to decarbonize the Port of Vancouver,” Dall’Antonia said.
Phase 2 would include global export capability, but even then, it would be aimed mostly at increasing capacity for refuelling, rather than competing with LNG Canada.
Dix highlighted the environmental benefits of powering ships with LNG. This includes a 25-per-cent reduction in greenhouse gas emissions, a 76-per-cent reduction in nitrous oxide emissions, and a 90-per-cent reduction in both sulphur oxides and particulate pollution.
“Switching from traditional fuels to LNG will reduce emissions, while improving air quality for coastal communities,” Dix said.
Having cleared this regulatory hurdle, Fortis expects to begin construction on the Phase 1B expansion as soon as 2027.