FortisBC's Tilbury Island Expansion: A $6 Billion LNG Hub for the West Coast

📅 5 days ago

FortisBC is set to invest close to $6 billion in expanding its Tilbury Island LNG facility, significantly increasing capacity for marine traffic and home heating, with construction slated to begin in 2027.

The South Fraser River’s Tilbury Island is on track to become a pivotal liquefied natural gas (LNG) supply center for marine transportation on the West Coast, as FortisBC prepares to invest billions into infrastructure enhancements. The construction timeline for this substantial expansion is projected to begin in early to mid-2027, with the goal of boosting LNG capacity by an impressive 250 percent. The anticipated total cost of the project is nearing $6 billion, as disclosed to regulatory agencies.
This ambitious initiative is rooted in three significant projects currently navigating various stages of approval. The first project is the Tilbury expansion Phase 1B, which aims to expand the Tilbury LNG Facility with an estimated value of $2 billion, located at 7555 Hopcott Rd, Delta, BC. The second project pertains to the construction of the Tilbury Marine Jetty by Tilbury Pacific, a FortisBC subsidiary, which carries a projected cost of $260 million and is situated on River Rd, Delta, BC. The third component is the Tilbury expansion Phase 2, which aims to further augment the facility's capabilities.
FortisBC has indicated that no general contracts have been awarded thus far, as the timelines for project procurement are still to be determined. A spokesperson for the company stated, “Our next step is to advance the engineering design of the project. As the project progresses and procurement plans are finalized, additional information will be shared.” This infrastructure development will enhance the existing LNG facility, which serves as one of two provincial storage sites managed by FortisBC to address winter shortages in home heating.
Originally established in 1971, the Tilbury Island plant underwent an expansion in 2018 (Phase 1A) to accommodate a larger storage tank aimed at bolstering home heating requirements. Since then, the facility has evolved into an LNG fuelling station for BC Ferries and Seaspan Ferries. The current expansion, Phase 1B, will advance this role further by providing a marine loading jetty for ship-to-ship service, thereby facilitating LNG bunkering, which is increasingly recognized as a crucial alternative fuel for the maritime sector. The Vancouver and Fraser Port Authority noted that LNG bunkering has gained traction with various vessels since its introduction at the Port of Vancouver, particularly through Seaspan Energy, which was the first accredited provider for LNG supply to vessels in late 2024.
The expansion plan for Phase 1B has recently received an order-in-council approval from the NDP government, allowing it to bypass the standard certificate of public convenience and necessity usually required under the B.C. Utilities Commission Act. Roger Dall’Antonia, president and CEO of FortisBC, expressed pride in the project, stating, “With this expansion, we will be able to produce more lower-carbon LNG to fuel the modern generation of ships visiting our coast. We are proud to partner with the Musqueam Indian Band on this project that will benefit the region for decades to come.”
Phase 1B is projected to deliver up to 0.65 million tonnes of liquefaction capacity to meet the growing demand for LNG marine fuel, along with a new 230 kV transmission line connected to the City of Delta, the Tilbury Marine Jetty, and onshore piping linked to the existing facility. A press release from the B.C. government highlighted that the project is expected to contribute over $800 million to the gross domestic product during construction and create an average of 1,100 jobs annually over a four-year period.
The construction strategy involves the development of the Tilbury Marine Jetty, which will feature a marine loading platform, a temporary floating bunker berth, mooring dolphins, an access trestle, and a connecting LNG pipeline to the existing FortisBC facility for direct loading. This jetty will accommodate bunker vessels, barges, and larger ocean-going carriers. The project has already secured its Environmental Assessment Certificate and received federal approval in 2024, with construction slated to commence in early 2027 and operations potentially starting around 2029.
Additionally, the Tilbury Phase 2 expansion aims to construct a new LNG storage tank with a capacity of 142,400 cubic metres, effectively increasing the current storage capacity by 2.5 times. This phase is expected to provide additional liquefaction capacity of up to 2.5 million tonnes per year to cater to market demands. The projected cost for Phase 2 ranges from $3 billion to $3.5 billion, positioning it as one of the largest capital projects in the Lower Mainland and projected to add approximately $1.7 billion to B.C.’s gross domestic product during construction.
As the project progresses into the effects assessment and recommendation phase, the B.C. Environmental Assessment Office (EAO) is developing a draft assessment report and environmental assessment certificate, which will include proposed conditions and a project description for approval. Feedback on the project concluded on July 27, with a final report from the EAO expected by late 2026. However, the expansion has faced opposition from municipalities and environmental groups. Kelly Greene, NDP MLA for Richmond-Steveston, has raised concerns about safety, stating that while some community safety issues may be mitigated, the project still raises significant safety concerns.

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