Canada-based electricity and natural gas distribution utility FortisBC has signed an agreement to export liquefied natural gas (LNG) from its Tilbury facility to China.
The long-term supply agreement was agreed by FortisBC with China’s Top Speed Energy. It follows after the Tilbury LNG expansion project in Delta, British Columbia (BC), was completed earlier this year.
Under the terms of the two-year agreement, approximately 53,000tpa of LNG or nearly 60 ISO standard-sized shipping containers a week will be shipped from Tilbury to China by mid-2021.
According to the company, the LNG volume that will be exported is equivalent to the volume required to heat more than 30,000 BC households a year.
FortisBC market development and external relations vice-president Douglas Stout said: “This is the first agreement of its kind that will see Canadian LNG shipped regularly to China.
“There is strong demand for Canadian LNG in China and this is an exciting time to be working in the industry here in BC.”
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By GlobalDataThe Tilbury project expansion has added 250,000tpa of LNG production capacity and 46,000m³ additional storage capacity.
Once implemented, the agreement will help reduce between 90,000tpa and 180,000tpa of greenhouse gas (GHG) emissions.
Canada Natural Resources Minister Amarjeet Sohi said: “We are using sustainable Canadian fuels to reduce worldwide carbon emissions, and the opportunities to strengthen Canada’s economy and create good jobs continue to grow.”
In recent times, Chinese industries and residential buildings are shifting from coal to natural gas to improve the quality of air.
Top Speed Energy CEO Chen Jianrong said: “The market for Canadian LNG will increase as China seeks to reduce air pollution and carbon emissions by switching to lower-carbon energy.”
