Canadian company FortisBC has entered into its first term supply agreement to produce liquefied natural gas (LNG) for Top Speed Energy Corp. to export to China.
This term supply agreement is said to be a major development
in Canada’s LNG export industry as it allows an increased supply of domestic
LNG to China.
It was made possible by the completion of the Tilbury LNG
expansion project in Delta, B.C. earlier this year.
The two-year agreement will see 53,000 tonnes of LNG a year
or about 60 ISO containers a week shipped from Tilbury to China by the summer
“This is the first agreement of its kind that will see
Canadian LNG shipped regularly to China,” Douglas Stout, FortisBC
vice-president of market development and external relations, said.
“There is strong demand for Canadian LNG in China and this
is an exciting time to be working in the industry here in B.C,” he added.
In 2017, FortisBC became the first company in Canada to
supply LNG for export to China. Since then FortisBC has been supplying LNG to
customers for export to China on a spot basis. With the expansion project
adding LNG production capacity of 250,000 tonnes per year and additional
storage capacity of 46,000 cubic metres, Tilbury is leading Canada’s export
industry into uncharted territory.
Tilbury’s new expansion facility is designed to be one of
the cleanest LNG facilities in the world. This agreement would reduce between
90,000 and 180,000 tonnes of GHG emissions annually, according to a lifecycle
greenhouse gas (GHG) emissions tool developed specifically for Tilbury.
“The announcement of an LNG contract at Tilbury is an
encouraging step for Canada’s LNG export industry. We are using sustainable
Canadian fuels to reduce worldwide carbon emissions,” Amarjeet Sohi, Minister
of Natural Resources, pointed out.
Shipping LNG by ISO container helps meet the energy demands
of industrial and public utility customers in China who are not connected to a
pipeline network as the containers can be transported virtually anywhere and
don’t require large regasification terminals to convert the LNG back into
“The market for Canadian LNG will increase as China seeks to
reduce air pollution and carbon emissions by switching to lower-carbon energy,”
Chen Jianrong, Top Speed Energy CEO, noted.