It's not clear what will become of any further expansion for FortisBC's Tilbury liquefied natural gas plant following a proposed deal to supply product to Hawaii fell through.
Late last month, a longterm contract, which would have financed a second major expansion worth hundreds of millions of dollars, was squashed after a regulatory body rejecting a proposed merger between Hawaiian Electric Co. and Florida-based NextEra Energy. In May, a deal was announced with Hawaiian Electric to deliver 800,000 metric tonnes from the Tilbury LNG facility for 20 years, starting in 2021. When the deal was announced, B.C. Minister of Natural Gas Development Rich Coleman said the agreement showcases the province's capacity to supply clean energy to new markets.
However, that deal was contingent on the Hawaii Public Utilities Commission approving the merger.
FortisBC is already undertaking a $400-million expansion at its Tilbury plant.
In operation since 1971, the plant cools natural gas into a liquid state for storage. It's then converted back into gas vapour and delivered by pipeline during periods of high demand.
A FortisBC spokesperson at the time of the Hawaii deal noted the new contract would have meant additional liquefaction equipment and a storage tank would be needed at the Tilbury site, as well as a new 230 kV power line connecting Tilbury to B.C. Hydro's Arnott substation in East Ladner. The expansion project would have commenced in 2018.
Asked about any future expansion at Tilbury, a FortisBC spokesperson issued a statement only saying the site at Tilbury can accommodate additional storage and liquefaction equipment, which is what makes it attractive to potential customers.
"Currently we are in discussion with a number of other potential customers who are interested in LNG.
If we bring on new LNG customers, our Tilbury operations will need to increase to meet the demand and we'll be looking to expand our facility." FortisBC notes that "in addition to upgrading the facility to fulfill a future expansion, we'll also need to build new electrical power lines so we can continue powering Tilbury with clean electricity. We've started very early discussions with elected representatives, city officials, local landowners and community groups about constructing a new 230 kV power line connecting Tilbury to BC Hydro's Arnott substation in Delta."
