Okanagan Capacity Mitigation Project
We’re planning to increase our capacity for the coldest days of the year in the Okanagan by developing a new small-scale liquefied natural gas (LNG) storage and send-out facility next to an existing natural gas station on industrial zoned land owned by FortisBC in Kelowna. This project is the most feasible alternative to meeting future energy demand in the region by the winter of 2026/27.
Growing demand for energy in the Okanagan region
The Okanagan is one of the fastest-growing regions by population in British Columbia and is home to approximately 110,000 FortisBC customers who rely on our natural gas service every day. Based on forecasts of continued growth, a solution is required by the winter of 2026/27 to help meet growing demand for natural gas on the coldest days of the year.
About this project
The Okanagan Capacity Mitigation Project (OCMP) would result in annual transportation of LNG produced at FortisBC’s Tilbury facility in Delta, B.C., to the new small-scale facility in Kelowna. Each fall, up to 30 LNG tanker truckloads will be transported gradually to fill six prefabricated 190 cubic metre tanks in preparation for the winter months. No LNG production will take place at the facility and the tanks are expected to be empty for much of the year.
The facility will be constructed in two phases. Initially, the project will incorporate one mobile tank (approximately 60 cubic metres) and three portable LNG tankers that will be filled and staged on site in anticipation of extreme cold weather events. Then, six prefabricated tanks will be installed onsite to increase storage capacity, consistent with demand growth.
LNG stored at the Kelowna facility will only be vaporized and injected into our distribution system on the coldest day(s) of the year to meet peak energy demand in the Okanagan.
Project timelines and next steps
In accordance with the timeline set by our regulator, the British Columbia Utilities Commission (BCUC), we submitted our application for the OCMP on July 30, 2024, and we are now awaiting their decision. If approved, construction is expected to begin in 2026.
July 30, 2024
FortisBC applies to the BCUC for the Okanagan Capacity Mitigation Project
February 13, 2024
Mitigation plan under development following BCUC decision
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Partnering with communities
We’re committed to the South Okanagan and are pleased to be active in these communities where we live and work. In addition to regularly engaging residents and Indigenous communities on our services and energy infrastructure, we’re committed to investing in and supporting the region in a variety of ways.
This includes contributing to, and participating in, local community events such as the City of Kelowna annual Civic Awards, The Friends of South Slopes – adopt a Trail program, and Okanagan Nation Alliance’s annual events, including the Youth Unity Run. Other events include the Kelowna Car & Bike show, Rutland’s Scarecrow Festival and Winter Light Up.
Regulatory process
In accordance with the timeline set out by our regulator, the British Columbia Utilities Commission (BCUC), we submitted our application for the Okanagan Capacity Mitigation Project on July 30, 2024, and we are now awaiting their decision.