The British Columbia Utilities Commission has approved FortisBC Energy Inc.’s Tilbury LNG storage expansion — a CAN$1.14 billion project to replace a 56-year-old tank at the Delta, BC facility and add contingency storage capacity to a grid that currently depends on a single third-party pipeline for approximately 85% of its gas supply. The Commission issued a Certificate of Public Convenience and Necessity (CPCN) following a public review process that included eight formal interveners.
Why the Tilbury LNG Storage Expansion Was Approved
FortisBC’s case rested on supply resilience. With 85% of British Columbia’s gas arriving via a single pipeline corridor, any disruption to that supply route creates immediate delivery risk for residential and commercial customers. The existing Tilbury tank — commissioned in the late 1960s — has reached the end of its operational life and cannot be relied upon for contingency storage through the 2030s.
The BCUC determined the project is in the public interest. Under the approved design, two-thirds of the new tank’s capacity will be held as contingency supply, with the remainder available for peak winter demand management. FortisBC confirmed the facility will be used solely for domestic gas storage — not marine fuelling or LNG export — and any change in usage would require separate regulatory approval.
The Tilbury LNG storage expansion is one of the more significant LNG infrastructure decisions in Western Canada in the current regulatory cycle. British Columbia’s gas distribution network serves over one million customers, and the single-pipeline dependency has been flagged in multiple previous BCUC proceedings as a structural vulnerability.
Project Cost, Timeline and Customer Impact
Construction is scheduled to run for six years, with the new tank entering service by 2030. During the construction period, FortisBC projects that delivery rates will increase incrementally by an average of 1.78% per year — a phased cost recovery approach that spreads the capital burden across the build period rather than applying it as a step-change on completion.
Once operational, the facility is expected to reduce long-term costs by eliminating reliance on external storage contracts and third-party delivery infrastructure during peak and emergency periods. FortisBC has argued that the avoided cost of procuring replacement supply during a pipeline disruption event would exceed the project’s capital cost over a 40-year asset life.
The project also forms part of FortisBC’s broader positioning on energy transition — the Tilbury site has previously been used to explore hydrogen blending and low-carbon gas integration, and the new storage infrastructure is designed to be compatible with future low-carbon fuel pathways. For context on how Canada’s LNG storage investment compares regionally, see our coverage of Brazil’s LNG regasification capacity expansion and the global underground gas storage outlook for 2026.
Tilbury LNG Storage Expansion in the Wider LNG Infrastructure Context
The Tilbury approval comes as LNG storage investment accelerates globally. Regasification and peak-shaving facilities are being expanded or approved across North America, Europe, and Asia as utilities seek to reduce dependence on single-source pipeline supply — the same vulnerability that drove FortisBC’s application. The top natural gas storage companies are deploying capital into both above-ground LNG and underground storage formats to meet this demand.
For FortisBC, the Tilbury facility has been the centrepiece of its LNG strategy since the 1960s. The replacement tank will more than double the site’s effective contingency storage capacity, and positions the utility to meet projected demand growth through at least 2045 under its current integrated resource plan.
The BCUC decision is final. FortisBC is expected to advance to detailed engineering and procurement in 2026 ahead of a construction start in 2027.
What is the FortisBC Tilbury LNG storage expansion project?
The Tilbury LNG storage expansion is a CAN$1.14 billion project to construct a new large-scale LNG storage tank at FortisBC’s Tilbury facility in Delta, British Columbia. It replaces a 56-year-old tank that has reached the end of its operational life and adds contingency supply capacity to the provincial gas grid.
Why did the BCUC approve the Tilbury LNG storage expansion?
The British Columbia Utilities Commission approved the project after determining it is in the public interest. FortisBC’s gas distribution network depends on a single third-party pipeline for approximately 85% of its supply, and the new tank provides critical contingency storage to manage disruption risk.
When will the Tilbury LNG storage expansion be completed?
Construction is expected to span six years, with the new facility scheduled to enter service by 2030. FortisBC plans to advance to detailed engineering and procurement in 2026 ahead of a construction start in 2027.
How will the Tilbury expansion affect FortisBC customer rates?
During the construction period, delivery rates are projected to increase incrementally by an average of 1.78% per year. Once operational, the facility is expected to reduce long-term costs by eliminating reliance on external storage contracts and third-party infrastructure during peak demand and emergency periods.
Will the Tilbury facility be used for LNG export or marine fuelling?
No. FortisBC confirmed that the Tilbury LNG storage expansion will be used solely for domestic gas storage. Any future change in usage — including marine fuelling or LNG export — would require separate regulatory approval from the BCUC.