Buying liquefied natural gas (LNG)
Expression of interest (EOI) for LNG dispensing under rate schedule 46
We are requesting expressions of interest to dispense LNG under rate schedule 46.
If you’ve applied for an incentive, we encourage you to submit an EOI for LNG supply.
A FortisBC representative will be in touch in two to three weeks to discuss your fuelling requirements.
Q&A and terms and conditions
FortisBC will manage the overall available quantity of LNG that can be contracted for under rate schedule 46 from the existing facilities and from the planned expansion at Tilbury which is scheduled for mid-2016. The available quantity will depend on FortisBC’s overall LNG liquefaction and storage capacity, and existing commitments which include peaking and emergency supply requirements for traditional utility markets.
FortisBC will provide LNG service to a customer if:
- adequate capacity exists on the FortisBC system;
- there is available LNG capacity that is not already committed as contract demand under a Long-Term LNG Service Agreement or Short-Term LNG Service Agreement; and
- the customer has entered into a LNG agreement.
FortisBC will endeavor to provide LNG service from one of the LNG facilities preferred by the customer, but reserves the right to designate at the time of entering the LNG agreement and/or during the contract term another facility for dispensing some or all of the contract demand.
LNG is sold FOB (free on board) the production facility. For transportation services there are two options:
- Customers can arrange for their own tankers or tankers provided by their contractors to pick up at the LNG plant
- Customers can receive LNG delivery from FortisBC using our LNG tankers to deliver to your location (subject to certain geographic restrictions). Charges for electing FortisBC’s optional LNG transportation service, are summarized in the rate schedule 46 LNG tariff.
There is no limit to length of term under rate schedule 46. Short-term LNG service is defined as a minimum of one (1) year and a maximum of less than five (5) years in duration and a specified contract demand.
Long-term LNG service is defined as a minimum contract term of five (5) years and a specified contract demand for the duration of the long-term service.
In allocating available LNG capacity that is not already committed, FortisBC will give priority based on:
- first, length of contract term, with longer terms having priority over shorter terms;
- and if the desired contract term is the same for more than one potential Customers, then by volume, with larger volumes having priority over smaller volumes.
A customer may purchase in excess of the contract demand as spot LNG service, subject to availability of supply as determined solely by FortisBC.
Charges for LNG service are detailed in the rate schedule 46 tariff. Charges include:
Liquefaction charge, which consists of LNG facility charge and an electricity service charge that totals to $4.35/GJ plus a commodity charge that is set monthly at the Sumas monthly index price (December 2013 price $4.34/GJ). If the customer receives LNG supply from FortisBC via the optional LNG transportation service, transportation charges will apply as follows:
- LNG tanker charge – a charge per day or partial day for the use of a LNG tanker owned or provided by FortisBC; and
- LNG tanker hauling charge – a hauling fee based on the cost to FortisBC to contract with a third-party contractor to haul the LNG tanker, plus 15%.
The customer or its agent will provide FortisBC by fax or email, prior to 12:00 a.m. local time on each day, information that will include the customer’s requested quantity of LNG for the day commencing in approximately 24 hours and the requested time of loading.
If the customer wishes to use LNG transportation service, the customer or its agents shall notify FortisBC by fax or email prior to 7:00 a.m. local time and provide FortisBC with the customer’s desired quantity of LNG and the desired date and time of arrival of LNG at the customer designated location. FortisBC requests to receive such notice no later than 48 hours prior to the requested date and time of arrival of the tanker at the customer designated location.
Customers seeking LNG service beyond the contract term must enter into a new LNG agreement.
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