The British Columbia government has cleared a major regulatory hurdle to advance a $2-billion expansion of FortisBC’s Tilbury Liquefied Natural Gas (LNG) facility, a move the province says will boost green shipping and support Indigenous equity ownership.

The Phase 1B expansion of the facility in Delta, B.C., will increase its capacity to produce LNG, targeting growing demand for cleaner marine fuelling options at the Port of Vancouver and across Pacific shipping routes.

To provide regulatory certainty, the province issued an Order in Council exempting the expansion from requiring a Certificate of Public Convenience and Necessity under the Utilities Commission Act. The decision also establishes a framework allowing the Musqueam Indian Band to acquire an equity stake in the project through a partnership with FortisBC.

"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, noting the move advances economic reconciliation while providing an alternative to traditional marine fuels like diesel.

Provincial officials framed the project as a milestone in B.C.’s "Look West" economic strategy, which aims to attract $200 billion in major-project investments over 10 years.

Ravi Kahlon, Minister of Jobs and Economic Growth and MLA for Delta North, said the project helps position the region as a leading international marine fuelling hub during a period of global economic uncertainty.

According to government figures, replacing conventional bunker fuels with LNG can reduce marine greenhouse-gas emissions by up to 25 per cent, while lowering nitrous oxide emissions by 76 per cent and cutting sulfur oxides and particulate matter by 90 per cent.