FortisBC Expanding LNG Exports to China

FortisBC said March 29 it is ramping up its LNG exports to China, and is currently filling 20 ISO containers from its small-scale Tilbury liquefaction facility in the Lower Mainland of BC for delivery to China Energy Reserve and Chemicals Group (CERCG).

This cargo is bound for Shanghai, where the government is restricting the use of coal and wood, and vehicles, to curb rising pollution.

More shipments are planned throughout 2018 to help CERCG meet China’s growing demand for lower-carbon fuels.

“China’s supply of LNG is currently quite limited, so we are seeking new sources of LNG to meet future demand,” said Henry Liu, Canada representative for CERCG. “We see a very good business future here in Canada and we are pleased to work with FortisBC to deliver LNG to China.”

In November 2017, FortisBC launched a pilot shipment of the first container of LNG from Canada to China. Since then, the company has been working with prospective Chinese customers on the logistics of shipping small amounts of LNG by container ship, and earlier this year delivered two CERGC shipments of two containers each to Shanghai.

“FortisBC is exploring opportunities to provide small-scale customers in China with LNG to help them achieve their goals of reducing air pollution,” said Douglas Stout, vice-president of market development and external relations at FortisBC. “Through these shipments BC-produced natural gas is playing a small, but growing role in the global action against climate change.”

FortisBC is fuelling the shipments from its Tilbury liquefaction and storage facility and its Mount Hayes storage facility – the only such facilities on Canada’s west coast.

In July 2014, FortisBC launched a $400mn expansion project at Tilbury, increasing liquefaction capacity to about 37mn ft3/day from 4.7mn ft3/day and adding about 1.04bn ft3 of LNG storage capacity. The expansion is substantially complete and is expected to be fully operational later this year.

(Image courtesy FortisBC)