The Government of Canada announced on September 22, 2026 that it had approved the expansion of FortisBC’s LNG (Liquefied Natural Gas) terminal located on Tilbury Island near Vancouver, British Columbia (B.C.). The approval is reported to be the first application of Ottawa’s newly introduced fast-track permitting program, “One Project, One Review.” The total investment for the expansion is C$3.5 billion, and once complete, the terminal’s output capacity is expected to increase tenfold from current levels.
FortisBC operates an LNG terminal on Tilbury Island in Delta, B.C., along the Fraser River, and the expansion is reported to involve constructing new storage tanks and liquefaction facilities. The approval came immediately after British Columbia’s Environmental Assessment Office issued an environmental assessment certificate to FortisBC for the project, and it is reported that Ottawa relied on the provincial review rather than conducting a separate federal assessment. This is described as the first real-world application of the “One Project, One Review” program, which the federal government newly established to shorten approval timelines for major projects. Tim Hodgson, Canada’s Minister of Energy and Natural Resources, reportedly said, “We’re taking what we’ve learned through the Major Projects Office and bringing that skill and expertise to bear across all projects, backed by a legislative framework that applies to all of them.” Once complete, the expanded Tilbury LNG terminal is expected to serve both marine bunkering fuel supply and overseas LNG export markets, according to the report.
The total investment for the expansion is reported at C$3.5 billion, with output capacity expected to increase tenfold once complete. Construction of the new storage tank and liquefaction infrastructure is slated to begin in early 2027, according to the report. The project sponsors reportedly project construction-phase employment of 6,200 FTE (Full-Time Equivalent)-years, with approximately 100 permanent jobs expected once the facility is operational. The expansion is also reported to contribute up to C$1.7 billion to provincial GDP (Gross Domestic Product).
The project was originally initiated in February 2020 but was delayed by the COVID-19 pandemic, with FortisBC reportedly submitting a revised application in February 2026. The approval is reported to align with Ottawa’s broader policy push to shorten permitting timelines for major infrastructure projects, alongside efforts to replace bunker fuel used in marine shipping with cleaner natural gas.
This approval is drawing attention as the first real-world application of a newly established fast-track permitting program to a major energy infrastructure project, a precedent that could reshape industry expectations for approval timelines on similar LNG and gas infrastructure projects going forward. The approach of having the federal government rely on a single provincial review rather than conducting a duplicate federal assessment is being cited as a response to the multi-layered permitting delays that have long hampered major energy projects in North America. As the marine shipping sector continues shifting from bunker fuel to LNG as a cleaner fuel source, demand for LNG terminals equipped with bunkering infrastructure is reportedly on the rise. The conversion of what was originally a small-scale peak-shaving facility into a combined export-and-bunkering terminal may also serve as a reference case for expansion or repurposing discussions involving other small and mid-sized LNG facilities on the North American west coast. Whether this approval’s pace can be replicated for other major projects, however, remains something that will need to be confirmed through additional cases going forward.
With construction of the new storage tank and liquefaction facility slated to begin in early 2027, whether construction actually starts on schedule is a primary point to watch. The permitting progress of the separately proposed Tilbury Marine Jetty, another LNG export terminal project on the same Tilbury Island site, also warrants continued attention. Whether the “One Project, One Review” program will be extended to other major energy and resource projects beyond this case, and if so, how much it shortens actual approval timelines, is also of industry interest. In addition, as the expansion increases both bunkering fuel supply and export volumes simultaneously, whether it leads to long-term supply contracts or additional equipment orders is worth watching.