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Delta's future fueled by LNG

With Tilbury plant expanding, a marine export facility planned and a proposal at TFN, Delta becoming hub
lng
FortisBC president and CEO Michael Mulcahy addresses the luncheon.

Liquefied natural gas has been part of Delta's scene for many years, but it's going to be an even bigger part of its future.

That was the underlying message at a packed Delta Chamber of Commerce luncheon Wednesday where LNG expansion was the topic.

A who's who of Delta business and political leaders, as well as representatives from the

Tsawwassen First Nation and a few local activists, were at the Coast Tsawwassen Inn to hear from FortisBC president and CEO Michael Mulcahy, prime contractor Bechtel Canada's Michael Hurley, WesPac Midstream vice-president of engineering Art Diefenbach and Delta Mayor Lois Jackson.

They talked about the major expansion underway at the FortisBC Tilbury facility as well as the proposal by WesPac to build an adjacent marine jetty for LNG shipping.

A separate proposal by the TFN to enter into a partnership with FortisBC to build an LNG export facility on Tsawwassen lands was also mentioned but not talked about in much length, as it was noted TFN members still have to vote on the plan.

Saying LNG is nothing new, especially in Delta, Mulcahy went over the economic benefits of the $400-million Tilbury expansion for Delta and the Lower Mainland, a message similar to one he delivered at a media event at the plant last week. He also noted there has been 44 years of safe operations at Tilbury.

Diefenbach talked about his company's marine jetty proposal, saying the facility would receive its supply from the Fortis Tilbury plant and would have just three larger ships arriving per month to start. It would eventually see a maximum of one ship every three days, not including smaller barges. Diefenbach noted it's a less than seven per cent increase in ship movements on the Fraser River. He also talked at length about the safety measures that would be implemented and all the federal and provincial requirements.

"The LNG carriers have had an exceptional safety record. There's never been a major accident or security problem in over 50 years of shipping, 135,000 LNG voyages and 130 million miles travelled. The ships that carry LNG are specially built... they are purpose-built especially for this and have specially trained crews," he said.

Diefenbach noted the industrial site is the former home of a woodchip operation and that once restoration is complete, they will "leave the area a lot better than it is today."

Already having an export license from the National Energy Board, WesPac is hoping to begin construction next fall.

Talking about how the Tilbury area has grown into a modern industrial park, and that the Tilbury LNG facility has been there for many years, Jackson gave an enthusiastic speech about the benefits when it comes to jobs.

She also talked about how such a facility wouldn't have even been possible without industrial land becoming available.

As far as the Wespac proposal, she noted that it will face a rigorous approval process and, even if it passes all those steps, a rezoning proposal must still go through a Delta public hearing.

Following the presentations, there was enough time for a few questions. Asked what measures can be implemented given WesPac's facility would be across the river from a proposed jet fuel storage facility in Richmond, Diefenbach said all those factors will be taken into account in the environmental assessment. Regarding the George Massey Tunnel, he said it makes no difference whether the tunnel is replaced by a bridge.

Asked about the need for such projects when there's a global LNG glut, Mulcahy said there's no concern because they are concentrating on "medium to small markets." As far as the need to use farmland as right-of-ways to bring more electric power, he said a number of alternatives will be explored and stakeholders engaged if further expansion occurs at the plant.