FortisBC will produce liquefied natural gas (LNG) for export to China as part of Canada’s first long-term supply agreement, the British Columbia-based utility said yesterday.

The two-year agreement with China’s Top Speed Energy Corp. will see 53,000 tonnes of LNG a year, or about 60 ISO containers a week, shipped from the Tilbury facility to China by the summer of 2021.

The volume of LNG to be exported is equivalent to the volume necessary to heat more than 30,000 average British Columbia (B.C) households for a year.

“This is the first agreement of its kind that will see Canadian LNG shipped regularly to China,” said Douglas Stout, FortisBC’s Vice-President of Market Development and External Relations.

“There is strong demand for Canadian LNG in China and this is an exciting time to be working in the industry here in B.C.”

FortisBC became the first company in Canada to supply LNG for export to China in 2017. Since then, the company has been supplying LNG to customers for export in China on a spot basis.

Tilbury expansion

With the Tilbury expansion project adding LNG production capacity of 250,000 tonnes per year and additional storage capacity of 46,000 cubic metres, Tilbury is leading Canada’s export industry into uncharted territory.

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Source: FortisBC

Tilbury’s new expansion facility is designed to be one of the cleanest LNG facilities in the world.

This agreement would reduce between 90,000 and 180,000 tonnes of greenhouse gas (GHG) emissions annually, according to a lifecycle GHG tool developed specifically for Tilbury.

This is the GHG emissions equivalent of removing every passenger-sized diesel truck in B.C.