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47 min ago 3 min read
British Columbia-based utility FortisBC’s environmental assessment (EA) application for the Tilbury Phase 2 liquefied natural gas (LNG) expansion project has been approved by the Canadian government under its “one project, one review” initiative.
The approval advances a project that would add up to 2.5 million tonnes per year (mtpa) of LNG liquefaction capacity, as Canada continues to develop its position as an LNG supplier to Asian markets.
The second phase of the project is expected to represent a CA$3.1bn ($2.2bn) investment over a six-year period.
It would include a new LNG storage tank with a working volume of up to 142,400m³, additional liquefaction capacity and a natural gas receiving facility.
FortisBC has said the additional capacity would support growing demand for LNG, including demand from export markets, while also contributing to energy resilience in British Columbia.
FortisBC previously said construction is expected to start as early as 2027, pending project approval.
Tim Hodgson, Canada’s Minister of Energy and Natural Resources, said, “This decision sends a clear signal that…Canada can efficiently and responsibly develop the infrastructure we need to strengthen our economy, reduce emissions, and enhance our energy security.”
Canadian LNG supply
Tilbury Phase 2 would add to Canada’s developing LNG export capacity on the country’s west coast, giving producers access to Pacific markets and, in particular, Asian LNG demand.
FortisBC became the first company in Canada to supply LNG for export to China in 2017 under a pilot project. In July 2019, it announced a long-term supply agreement to produce LNG for export to China.
According to a recent report from the South China Morning Post, the volume of China’s imports of Canadian LNG increased over twofold from August 2025, following global LNG supply disruptions.
The development of additional Canadian liquefaction capacity comes as global LNG markets continue to adjust to changing supply and demand, with new export projects adding supply while Asian demand remains an important driver of LNG trade.
EA application
The approval follows the BC government issuing an EA certificate to FortisBC for the second phase of the expansion project, after considering the BC Environmental Assessment Office’s (EAO) assessment report.
FortisBC the EA application with the BC EAO in December 2024.
Following the application, the second phase of the project entered a 180-day review period led by the BC EAO. During this time, there was a 45-day public comment period.
Following feedback from Indigenous groups, stakeholders, and government agencies, the company submitted a revised EA application to the BC EAO, which was accepted in March 2026.
