FortisBC’s $2B Tilbury expansion clears major regulatory hurdle

Key Takeaways:

• B.C. has issued an Order in Council exempting FortisBC’s $2-billion Tilbury Phase 1B expansion from BC Utilities Commission certification to accelerate construction.
• The provincial order establishes a commercial framework for the Musqueam Indian Band to acquire an equity partnership stake in the project.
• The expansion will generate $800 million in GDP, support 1,100 annual construction jobs over four years, and yield up to $20 million per year in provincial gas royalties.
• Subject to remaining permits, construction at the Delta facility is expected to start in mid-2027, with the expanded marine fueling capacity coming online in 2031.

The Whole Story:

B.C. is paving the way for a $2-billion expansion of FortisBC’s Tilbury LNG facility.

The province has issued a key Order in Council (OIC) exempting FortisBC’s Phase 1B expansion of its Tilbury facility from obtaining a traditional Certificate of Public Convenience and Necessity from the BC Utilities Commission. By bypassing the lengthy regulatory review process, the province aims to provide ratepayer protections and deliver regulatory certainty for the project, clearing the runway for work to begin in Delta as early as mid-2027.

The regulatory exemption aligns directly with B.C.’s “Look West” economic strategy, which targets $200 billion in major infrastructure investments over the next decade. The Phase 1B expansion will significantly scale up Tilbury’s liquefaction capacity to supply low-emission marine fuels to commercial shipping lines, BC Ferries, and international container vessels calling at the Port of Vancouver. Transitioning global cargo fleets from conventional diesel and heavy bunker fuel to LNG is projected to lower greenhouse gas emissions by up to 25 percent while cutting sulfur oxides by 90 percent.

Beyond expanding marine fuel supplies, the provincial order creates a formal equity framework enabling the Musqueam Indian Band to acquire an ownership stake in the project alongside FortisBC.

“Musqueam has always been a trading people, and today, we continue to build an economy that creates lasting benefits for our community while contributing to the prosperity of British Columbia,” said Musqueam Chief Wayne Sparrow. “This project reflects the importance of First Nations being owners, not just participants, in major developments on our territories.”

Economic modeling estimates that the four-year build will generate over $800 million in provincial GDP, create an average of 1,100 high-skilled jobs annually during construction, and yield $260 million in direct tax revenues. Once operational in 2031, the expanded terminal will deliver up to $20 million annually in natural gas royalties to the provincial treasury.

Adrian Dix, Minister of Energy and Climate Solutions, noted the dual purpose of the policy shift: “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,” Dix said. “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.”

The Phase 1B regulatory exemption coordinates with ongoing environmental reviews for FortisBC’s broader industrial master plan in Delta:

• Phase 1B Marine Expansion ($2B+ Investment): Fast-tracked via OIC to expand liquefaction capacity for vessel refueling; targeting construction start in mid-2027 and commercial in-service by 2031.
• Phase 2 Tank & Storage Project: A separate proposal involving a major new LNG storage tank, currently undergoing an environmental assessment with a final decision expected in late 2026.
• First Nations Equity Model: Establishes a commercial partnership structure allowing the Musqueam Indian Band to hold direct equity in the Phase 1B facility.
• Ratepayer Oversight: Requires FortisBC to submit annual reports on Phase 1A and 1B operations to the BC Utilities Commission to guarantee transparency and protect customer rates.