FortisBC Energy Inc. (FortisBC), BC’s largest natural gas distribution company, announced it has applied to the BC Utilities Commission (BCUC) to build a liquified natural gas (LNG) storage and send-out facility in Kelowna.
If approved, the facility will meet the needs of gas customers in the Okanagan when FortisBC reaches its maximum capacity in the area by the winter of 2026/27, for the short-term at least.
In December last year, the BCUC rejected FortisBC’s application to expand its gas pipeline serving the Okanagan. The BCUC agreed that demand for natural gas was increasing and that there is an “imminent” shortfall, but was not willing to approve a long-term solution when demand for natural gas might flatten or decline in future.
However, if demand for natural gas continues to grow, a longer-term solution will still be needed. The gas pipeline expansion that the BCUC rejected last year will be considerably more expensive to restart in future, with the cost of the land rights alone having increased by 20 to 40 percent.
FortisBC’s application is not yet posted on the BCUC’s website.