Ottawa Approves $3.5B FortisBC LNG Expansion at Tilbury Island
Federal approval has cleared the way for a $3.5-billion expansion of FortisBC’s Tilbury LNG terminal on B.C.’s coast, the Financial Post reports, with construction on new storage and liquefaction infrastructure slated to start in early 2027.
Market Impact
The approval came through Ottawa’s new “one project, one review” federal program, arriving immediately after the B.C. government issued an environmental assessment certificate for the project on Tilbury Island in the Fraser River. Rather than duplicating the review, the federal government let B.C.’s Environmental Assessment Office handle the assessment on its behalf.
“Canada is going to build its way to prosperity. We’re focused on major projects, and this reflects a strategic position for the government,” Tim Hodgson, Canada’s minister of energy and natural resources, told the Financial Post. He added the expansion supports a shift away from bunker fuel toward “cleaner natural gas,” noting that ships switching to LNG cut sulfur and particulate emissions by roughly 95% and lower carbon dioxide output by a quarter.
The project was first initiated in February 2020 but delayed by the pandemic; FortisBC submitted a revised application in February 2026. Once complete, the expansion will boost the Tilbury facility’s output tenfold, serving both marine bunkering customers and overseas LNG export markets. Tilbury Island already hosts Heidelberg Materials’ cement grinding plant and the proposed Tilbury Marine Jetty export terminal, making it an established industrial hub with river access.
What It Means for Subcontractors
- Construction on new storage tanks and liquefaction infrastructure is expected to begin in early 2027, giving B.C. pipefitters, electricians, and civil subs roughly a year to position ahead of prime contractor selection.
- No prime contractor or EPC award has been named yet in the source material; subs should treat this as a pre-procurement window, not a confirmed bid opportunity.
- Firms with LNG storage tank or marine terminal experience should watch for FortisBC procurement announcements tied to the Tilbury Island site in Delta, B.C., as the project moves from permitting toward construction mobilization.
- The Tilbury Island industrial park’s existing tenant base (aerospace, manufacturing, distribution) and river access suggest additional civil and logistics subcontract work may accompany the main LNG buildout.
