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 short-term solution to an expected shortfall of gas 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, there is a need to address increasing customer demand in case of an extreme cold weather event starting in the winter of 2026/27.

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.

In the first winter of operation in 2026/27, one mobile tank and three portable LNG tankers will be filled and staged on site in anticipation of extreme cold weather events.

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

After several months of planning following the British Columbia Utilities Commission’s (BCUC) decision on the Okanagan Capacity Upgrade Project, which included direction to file a mitigation plan by July 31, 2024, we have submitted a project application to the BCUC for the Okanagan Capacity Mitigation Project.

This project, which includes development of a small-scale liquefied natural gas (LNG) storage and send-out facility, is FortisBC’s proposed short-term solution to the expected shortfall of gas in the region by winter of 2026/27. It will address the anticipated capacity shortfall driven by increasing customer demand by storing liquefied natural gas (LNG) that can be directly injected into our distribution system during extreme-cold weather events in the Okanagan. The facility will be located next to an existing natural gas station on industrial zoned land owned by FortisBC off Spall Road, north of Harvey Avenue (Highway 97).

If our application is approved by the BCUC, construction is expected to begin in 2026.

February 13, 2024

Mitigation plan under development following BCUC decision

In accordance with the BCUC’s decision on the Okanagan Capacity Upgrade Project, FortisBC is currently developing a mitigation plan to address an expected capacity shortfall in the Okanagan region. The plan will examine potential short-term solutions to ensure customers’ energy demands are met in the event of a one in 20-year cold weather event starting in the winter of 2026/27 . FortisBC must file the plan with the BCUC by July 31, 2024. Updates on this process will be provided as they become available.

What happens if there is a leak?

Project info

LNG storage tanks are vapour tight, so air cannot get in and LNG cannot leak out. When stored in its double-walled tank, LNG cannot burn because there is no oxygen to react with.

In the unlikely event of a leak, LNG would warm, turn back into natural gas, rise and dissipate without leaving any residue on land or water. If spilled, it will quickly warm up and revert to a gaseous state.

Answered on:

Jul 30, 2024

What is FortisBC doing to keep customers and impacted stakeholders informed?

Project info

We're committed to dialogue through clear and open communication with all affected residents, municipalities, stakeholders, and Indigenous communities impacted by the OCMP and addressing any feedback or questions that may arise.

Answered on:

Jul 30, 2024

What is the cost of the project and how will it affect customer rates?

Project info

At this time, we estimate this project will cost approximately $50 million, which works out to an annual increase of approximately $6.93 per year for the typical, residential customer in 2028 when the project is fully in service.

These costs and any necessary rate changes were included as part of our submission to the British Columbia Utilities Commission, dated July 30, 2024.

Answered on:

Jul 30, 2024

How do I get more information on the project?

Project info

You can contact us through our project email address at [email protected]. We are more than happy to discuss the project with you and respond to any inquiries you may have. You can also find more information on the project by viewing the other sections of our project page.

Answered on:

Jul 30, 2024

Partnering with communities

We filed our initial application for the Okanagan Capacity Upgrade Project with our regulator, the British Columbia Utilities Commission (BCUC) on November 16, 2020. We received the BCUC's decision on December 22, 2023, which included direction to examine potential short-term solutions and develop a mitigation plan to be filed for review by July 31, 2024. Updates on this process will be provided as they become available.

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.

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