BCUC Approves FortisBC's $50 Million Okanagan LNG Capacity Project
(P&GJ) — The British Columbia Utilities Commission (BCUC) has approved FortisBC Energy Inc.'s Okanagan Capacity Mitigation Project, a crucial step in addressing natural gas supply concerns in the Okanagan region.
The project includes the construction of a new liquefied natural gas (LNG) storage and vaporization facility at FortisBC’s Kelowna Gate Station. LNG will be transported by truck from the Tilbury LNG facility to the Kelowna Gate Station to meet demand. The total estimated cost of the project is $50.39 million.
In its approval, BCUC acknowledged input from five intervener groups and 80 public comments, determining that the project is in the public interest. It was granted a Certificate of Public Convenience and Necessity. The BCUC also recognized the need to address a potential natural gas shortfall in the Okanagan region as early as the winter of 2026/27.
FortisBC’s application outlined the exploration of alternatives, including several site options, before settling on the Kelowna Gate Station for its technical suitability, cost-effectiveness, and ability to meet project timelines.
The Okanagan Capacity Mitigation Project aligns with both British Columbia's energy goals and FortisBC's 2022 Long Term Gas Resource Plan. However, the BCUC has directed FortisBC to submit a plan within the next six months to address long-term solutions for peak demand in the Okanagan region.
In December 2023, the BCUC rejected FortisBC's $327 million Okanagan Capacity Upgrade project, citing insufficient certainty about its need. This led to the development of the Okanagan Capacity Mitigation Project.
Public utilities must seek BCUC approval before constructing or operating new systems under section 45 of the Utilities Commission Act.
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