FortisBC (TSX: FTS, Stock Forum), a subsidiary of Fortis Inc., moved to strengthen the Liquefied Natural Gas (LNG) industry in British Columbia when the company announced today that it had cut the ribbon on construction of its $400.0 million Tilbury LNG facility expansion located in Delta, BC.
According to the news release, the expansion at the facility, first opened in 1971, will be powered by electric drives and the expanded liquefaction plant will be air-cooled, removing the need for cooling water.
The expansion project will allow the company meet the growing demand for natural gas for transportation, as an alternative energy solution for remote communities and the marketplace.
As well as transportation, LNG is also been increasingly used as a cleaner, more efficient and less expensive energy source by remote communities that lack access to natural gas pipeline systems.
In order to supply these growing markets, parent company, Fortis, has invested approximately $8.0 billion in BC's energy infrastructure and in 2014 alone, the company will invest another $600.0 million in the province.
The expansion at Tilbury will add 1.1 million gigajoules of LNG to storage and 34,000 gigajoules per day of liquefaction capacity. It is anticipated to bring job creation and economic benefits to the community of Delta, BC and the company expects to supply LNG to transportation customers from the expanded facility by the fourth quarter of 2016.
Premier of BC, Christy Clark, commented on the announcement, “As demand for natural gas increases around the world, British Columbia is uniquely positioned to take advantage. FortisBC's investment is a vote of confidence in B.C.'s growing LNG industry, both for export and domestic use.”
John Walker, Executive Vice President, Western Canadian Operations, Fortis, added, “FortisBC LNG is helping B.C. businesses increase their competitive position, while the increased demand will bring rate benefits for our nearly one million natural gas customers across the province.”
Delta Mayor, Lois E. Jackson, concluded, “The expansion of the Tilbury LNG Facility will bring skilled jobs to our community, providing further opportunities for growth amongst our local trades and technical sector," said Mayor Lois E. Jackson. "This prime location and excellent infrastructure truly position Delta as the municipality of emerging opportunities.”
Fortis was in the news recently when the St. John's Newfoundland-based company announced its final payment on debentures represented by installment receipts due October 27, 2014.
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