Canada LNG Facility Snags First Export Contract

The recently expanded Tilbury LNG terminal in Delta, BC, has won its first export contract, facility owner FortisBC reported on the 16^th July.

FortisBC stated that it will produce LNG for Top Speed Energy Corporation to export to China under a two-year term supply agreement.

The British Columbia firm contends the term supply agreement is unprecedented in Canada’s LNG export industry and was made possible with the Tilbury expansion earlier this year, which added 250,000 tonnes per year of LNG production capacity and 46,000 cubic metres of storage.

Under the agreement, 53,000 tonnes of LNG a year – approximately 60 standard-sized ISO shipping containers per week – will be shipped from Tilbury to China by the summer of 2021, FortisBC noted.

“This is the first agreement of its kind which will see Canadian LNG shipped regularly to China,” Douglas Stout, FortisBC’s vice president of market development and external relations, said.

“There is strong demand for Canadian LNG in China and this is an exciting time to be working in the industry here in BC.”

According to FortisBC, the Top Speed deal is the company’s latest pioneering move in Canada’s LNG industry. It stated that in 2017 it became the first Canadian company to supply LNG for exports to China and has been doing so on a spot basis since then.

“Canada is one of the leading natural gas producers in the world and our company is pleased to work with FortisBC to move their LNG to China’s fast-growing market,” Chen Jianrong, Top Speed’s CEO, said.

“The market for Canadian LNG will increase as China seeks to reduce air pollution and carbon emissions by switching to lower-carbon energy.”

Source: Rigzone