Artist’s rendering of the OCMP facility
BRITISH COLUMBIA – On March 3, 2025, the British Columbia Utilities Commission (BCUC) approved FortisBC Energy Inc.’s application for its Okanagan Capacity Mitigation Project.
The project includes building a new liquified natural gas (LNG) storage and vaporization facility at FortisBC’s Kelowna Gate Station and transporting LNG by truck from the Tilbury LNG facility to the Kelowna Gate Station.
In its application, FortisBC estimated the cost of the project to date to be $50.389 million.
After an open and transparent review process that included input from five intervener groups and feedback from 80 letters of comments from the public, the BCUC found FortisBC’s project to be in the public interest and granted it a Certificate of Public Convenience and Necessity.
The BCUC determined that there is a need to address a potential shortfall in natural gas capacity in the Okanagan region as early as the winter of 2026/27. The project will allow FortisBC to meet customer demand until future capacity needs are better defined.
Additionally, the BCUC found that FortisBC thoroughly explored alternatives to the project to address the natural gas capacity shortfall and considered multiple locations for the new system. FortisBC explained that the Kelowna Gate Station was chosen due its technical score, cost-effectiveness, and ability to meet the project’s timeline.
The project also aligns with British Columbia’s energy objectives and FortisBC’s 2022 Long Term Gas Resource Plan, which outlines the utility’s plans to serve customers’ energy needs and transition to a low-carbon energy future over the next 20 years.
While the Okanagan Capacity Mitigation Project was determined necessary to meet customer demand in the short-term, the BCUC directed FortisBC to submit a plan within the next six months to relieve or reduce peak demand in the Okanagan region in the long-term.
In December 2023, the BCUC denied FortisBC’s application for its $327 million Okanagan Capacity Upgrade project due to a lack of certainty that the proposed scope of the project was required. The BCUC directed FortisBC to develop a mitigation plan to address a potential capacity shortfall in the Okanagan region, which led to FortisBC’s application for Okanagan Capacity Mitigation Project.
Source: FortisBC
