$2-billion Metro Vancouver LNG plant expansion advances with First Nation stake | Daily Hive

$2-billion Metro Vancouver LNG plant expansion moves ahead with potential First Nation ownership stake

Tilbury LNG Facility on the Fraser River in Delta. (FortisBC)

FortisBC is moving ahead with its plans for a major expansion of its existing liquefied natural gas (LNG) production and storage facility on the Fraser River in Metro Vancouver, after the Government of British Columbia removed a key regulatory requirement for the project.

The provincial government announced today that it has issued an order exempting the Tilbury LNG Facility’s proposed Phase 1B expansion from having to obtain a Certificate of Public Convenience and Necessity from the BC Utilities Commission.

The decision provides greater certainty for a project that will cost over $2 billion, although FortisBC must still obtain all other required permits and regulatory approvals before construction can begin.

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Construction work could start as early as the middle of 2027, with the expanded facility potentially entering service in 2031.

The Phase 1B project would increase the amount of LNG produced at the Tilbury facility, which is located on Tilbury Island in Delta. Much of the additional fuel is expected to serve ships travelling through the Port of Vancouver, along the west coast of North America and across the Pacific Ocean.

FortisBC already supplies LNG to BC Ferries and Seaspan Ferries. The company says additional production would allow it to serve a growing number of commercial ships designed to operate on LNG rather than conventional marine fuels.

The regulatory changes also create a framework allowing the Musqueam Indian Band to acquire an ownership interest in the expansion through a partnership with FortisBC.

“The expansion of the Tilbury LNG Facility is an investment in B.C.’s future, creating jobs, growing our economy and helping reduce emissions through an investment of more than $2 billion,” said Adrian Dix, the B.C. Minister of Energy and Climate Solutions, in a statement today.

“By helping move this project forward, we’re also creating an opportunity for Musqueam Indian Band to become an equity partner, advancing economic reconciliation while supporting a cleaner alternative to traditional marine fuels like diesel.”

Musqueam chief Wayne Sparrow asserts that First Nations should have the opportunity to become owners of major projects developed within their traditional territories, rather than simply being consulted or offered limited benefits.

“This project reflects the importance of First Nations being owners, not just participants, in major developments on our territories. We welcome the Province’s support for advancing economic reconciliation through equity ownership and look forward to working alongside FortisBC, while continuing to engage with our community, to deliver long-term benefits for our people and the region,” said Sparrow.

The Tilbury LNG facility is also located just across from a disputed industrial area in southeast Richmond on the other side of the Fraser River, where a B.C. Supreme Court judge ruled last year that 740 acres of public land and privately owned fee-simple property are subject to the Aboriginal title of the Vancouver Island-based Cowichan Tribes. The Cowichan Tribes are appealing to expand their claim to 1,848 acres on the Richmond side of this area. The Musqueam and Tsawwassen First Nations have joined the federal, provincial and municipal governments in appealing the judge’s consequential decision, which could set a concerning major precedent across B.C.

Tilbury LNG Facility on the Fraser River in Delta. (FortisBC)

According to the provincial government, construction of the expansion would contribute more than $800 million to B.C.’s GDP and support an average of approximately 1,100 jobs annually over four years.

The provincial government also estimates the project would generate approximately $260 million in tax revenue and up to $20 million annually in natural gas royalties once operating.

The provincial government is presenting the expansion as part of its Look West economic strategy, which includes a goal of attracting $200 billion in major project investment over the next decade.

According to the utility and provincial government, LNG can reduce emissions and air pollution when it replaces traditional marine bunker fuels. They estimate it can produce up to 25 per cent fewer greenhouse gas emissions, as well as substantially lower sulfur oxides, nitrogen oxides, and particulate matter.

Roger Dall’Antonia, president and CEO of FortisBC, said the expansion would allow the company to produce more LNG for a new generation of ships calling at West Coast ports.

“We commend the Province for their leadership in approving these amendments, which will allow us to further decarbonize marine shipping in the Port of Vancouver,” said Dall’Antonia.

“Our Tilbury facility is already producing LNG for BC Ferries and Seaspan Ferries. With this expansion, we will be able to produce more lower-carbon LNG to fuel the modern generation of ships visiting our coast.”

To provide oversight following the exemption, FortisBC will be required to submit annual reports to the BC Utilities Commission on the performance of its Phase 1A and Phase 1B expansions.

The provincial government also notes that the regulatory structure is also intended to prevent the cost of the major expansion from being passed on to FortisBC’s regular utility customers through higher rates.

The Phase 1B expansion is separate from FortisBC’s proposed Tilbury Phase 2 project, which would include the construction of another LNG storage tank.

Phase 2 remains under review through B.C.’s environmental assessment process. A decision by the provincial government is anticipated later in 2026.

Just last week, the provincial government also announced it will create the first-ever site for ash dispersal in B.C., located on Tilbury Island within very close proximity to the LNG facility. Families who cremate their loved ones will be able to disperse the ashes into the waters of the Fraser River from Fraser Viewpoint, which will see enhancements to its park space and facilities.

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