Taking action to advance major LNG marine fuelling project

VANCOUVER -

Summary

• FortisBC is moving forward with its Phase 1B expansion of the Tilbury Liquefied Natural Gas ( LNG) Facility, enabling investment of more than $2 billion that supports jobs, economic growth and British Columbia's growing LNG marine fuelling sector - another step forward in B.C.'s Look West strategy
• The expansion supports the growing demand for LNG marine fuelling services, helping reduce emissions by shifting away from traditional marine fuels, such as diesel, while strengthening the competitiveness and sustainability of the Port of Vancouver
• The regulatory amendments enacted by the Province will help to advance economic reconciliation by enabling First Nations to acquire ownership interests in Phase 1B through a partnership with FortisBC

__________

The Province of B.C. has taken a key step to enable FortisBC to move forward with the expansion of its Tilbury Liquefied Natural Gas (LNG) Facility in Delta, another step forward in B.C.'s Look West strategy.

"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, Minister of Energy and Climate Solutions. "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 Tilbury Phase 1B expansion is expected to provide significant revenues to all levels of government, create highly skilled employment for B.C. residents and reduce emissions by offering a cleaner alternative to conventional marine fuels. Recognizing the project's significant economic and reconciliation benefits, the Province has issued an Order in Council (OIC) that exempts the Phase 1B expansion from the need to obtain a Certificate of Public Convenience and Necessity under the Utilities Commission Act. It provides greater regulatory certainty and optimizes the overall investment to be made by FortisBC.

The amendments establish a framework to support the expansion and enable Musqueam Indian Band to acquire interests in the project through a partnership with FortisBC.

It represents a step forward for a project that will deliver significant economic and environmental benefits for B.C., and to meeting the Province's 10-year goal of attracting $200 billion in major-project investment, as outlined in the Look West strategy.

FortisBC's Tilbury LNG Facility Phase 1B expansion and community benefits

Phase 1B of the expansion of FortisBC's Tilbury LNG Facility will increase the facility's capacity to produce LNG. The expansion helps meet rising demand for LNG fuelling service at the Port of Vancouver and improves access to LNG fuelling for vessels travelling along the western coast of North America and across the Pacific.

Using LNG in place of traditional bunker fuels, such as diesel, can play a significant role in decarbonizing the domestic and global shipping industry while improving air quality for coastal communities. Compared to conventional marine fuels, LNG can reduce greenhouse-gas emissions by as much as 25%, reduce nitrous oxide by 76%, sulfur oxides by 90% and particulate matter by 90%.

The expansion also represents an opportunity to create good-paying jobs, strengthen B.C.'s economy and advance economic reconciliation through First Nations ownership opportunities. The project helps position the Port of Vancouver as a leading LNG marine fuelling hub, supports the transition to lower-emission marine fuels, strengthens B.C.'s role in a growing global market and will deliver long-term economic benefits for communities throughout the province.

"With global uncertainty raising costs for people and businesses, it's never been more important to take real action on projects that strengthen B.C.'s economic future," said Ravi Kahlon, Minister of Jobs and Economic Growth, and MLA for Delta North. "This project helps position B.C. as a leading LNG marine fuelling hub, reducing diesel fuel use and displacing higher-emission marine fuels for the international marine industry. It's exactly the kind of investment our Look West strategy is designed to attract, strengthening B.C.'s role in a growing global market and delivering long-term economic benefits for communities across the province."

Benefits of the Phase 1B expansion will include:

• more than $800 million in gross domestic product (GDP) during construction
• an average of approximately 1,100 jobs generated each year over four years during construction
• tax revenue of $260 million
• as much as $15-$20 million per year in natural gas royalties paid to the Province

Next steps

The project will remain subject to all other applicable regulatory approvals and permitting requirements before construction can begin. Facility construction could start as early as mid-2027 and be in service as early as 2031.

The OIC approved by the Province on Friday, July 24, 2026, enables FortisBC to expedite its expansion of more than $2 billion while providing regulatory mechanisms to protect FortisBC ratepayers from rate impacts due to the large investment.

Quotes:

Roger Dall'Antonia, president and CEO, FortisBC -

"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. 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. We are proud to partner with the Musqueam Indian Band on this project that will benefit the region for decades to come."

Chief Wayne Sparrow, Musqueam Indian Band -

"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. 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."

Harly Penner, president, Seaspan Energy Limited -

"There is a growing demand for LNG as the global shipping industry transitions to lower-emission marine fuels. The proposed expansion of FortisBC's Tilbury LNG Facility will help us meet that demand and deliver safe, reliable, made-in-B.C. LNG to our global customers. We welcome the Province's decision to expedite the expansion process and Seaspan Energy is proud to play a role alongside FortisBC in advancing the marine-energy transition on the West Coast."

Quick Facts:

• The new Request for Annual Report Respecting the Tilbury Island Phase 1A and 1B Facilities Regulation will require FortisBC to report annually to the British Columbia Utilities Commission on the performance of Phase 1A and Phase 1B expansions to improve transparency for ratepayers and government.
• Separately, FortisBC's proposed Tilbury Phase 2 LNG Expansion Project, which includes construction of a new storage tank, continues through B.C.'s environmental assessment process.
• The project is in the effects assessment and recommendation phase, with a public comment period from June 25 until July 27, 2026.
• A decision is anticipated in late 2026.

Learn More: