The argument against a liquid natural gas facility in Kelowna

Photo: Google Maps

FortisBC's proposed LNG storage site (outlined in red) at 1569 Spall Road, Kelowna

FortisBC has requested permission from the B.C. Utilities Commission to build a small-scale liquefied natural gas storage and send-out facility at 1569 Spall Road in Kelowna, and then truck LNG up from the coast.

The facility, called the “Okanagan Capacity Mitigation Project,” is FortisBC’s response to an expected shortfall of natural gas in the Okanagan by the winter of 2026-27.

FortisBC’s rationale for the plant is the facility will be used on the coldest days of the year to ensure sufficient energy can be provided to customers who rely on gas to heat their homes and businesses, assuming demand in the region will increase due to continued population growth.

FortisBC’s application follows the BCUC’s rejection, in December 2023, of the “Okanagan Capacity Upgrade Project,” an approximately 30-kilometre, $320 million gas pipeline expansion. In the BCUC’s words, "Accordingly, we deny the granting of a CPCN (Certificate of Public Convenience and Necessity) for the OCU project at this time because we find it is not necessary for the public convenience and does not conserve the public interest."

The commission did not accept FortisBC’s premise gas demand will grow because government policy supports electrification, there are more efficient building standards and heat pump sales have outpaced sales of gas furnaces in North America since 2022.

The commission also did not accept FortisBC’s argument of needing to deal with peak demand, stating that community climate action plans are not currently anticipated to impact peak demand for gas in areas served by the OCU project.

No LNG production will take place at the Kelowna facility and the tanks are expected to be empty for much of the year. The Kelowna facility’s LNG will be produced at FortisBC’s Tilbury LNG facility in Delta and loaded into tankers there. Each fall, up to 30 LNG tanker truckloads will be transported to fill six prefabricated 190-cubic-metre tanks in preparation for the winter months. In Kelowna, the LNG will be vaporized and injected into the distribution system only on the coldest days of the year to meet peak energy demand.

The proposal should not be approved, on the basis it undermines crucial climate action, entails significant and needless health and financial risks and is unnecessary because better alternatives exist.

Building new natural gas infrastructure also works against the City of Kelowna's emissions reduction goals. Kelowna’s reliance on natural gas contributes significantly to greenhouse gas emissions. Okanagan municipalities, including Kelowna, Vernon and Penticton, have created climate action plans that meet the targets of B.C. and Canadian governments. The more recent Vernon and Penticton plans are explicit in recognizing the need to reduce natural gas use in buildings.

B.C. has committed to 100% zero carbon new construction by 2030. Currently, 30 local B.C. governments (several in the Okanagan), UBC and the Tsleil-Waututh First Nation have voluntarily adopted steps of the Zero Carbon Step Code for new construction. In addition, many existing homes are being retrofitted to use electricity for space and water heating, cooling and cooking and this trend will only increase with time. Electrification is an efficient, safe alternative that reduces emissions.

"Natural" gas is methane, which is more than 80 times more potent than carbon dioxide in warming the climate. The additional handling required to liquify, transport and regasify LNG results in more methane leaks and higher energy consumption. In many cases, the carbon footprint of LNG is so high, using it is actually worse for the environment than using coal.

Most gas in Fortis's system is fracked gas from B.C.’s northeast. Fracking negatively affects the health of people and wildlife and the process permanently contaminates large volumes of water. Gas appliances have been implicated in exposing people to respiratory disease-triggering pollutants.

The Okanagan’s population is predicted to increase but it will account for no, or very low, carbon growth. Instead of building an LNG facility, FortisBC could meet the possible energy shortfall by working with the City of Kelowna and Fortis Electric to promote electrification of homes and businesses. For every gas use in a home, there is an electric option that is more effective, efficient and healthier.

Cold climate heat pumps work efficiently in our climate and cost the same, or less, to install than gas heating systems. It’s an obvious choice for new construction and for furnaces that need replacing. In addition, a heat pump works as an air conditioner.

LNG is not flammable but is it dangerous to have an LNG storage facility on a busy road near residences and businesses, especially in a fire-prone area?

FortisBC submitted the application for the OCMP to the B.C. Utilities Commission July 30, 2024 and is now awaiting the commission’s decision. If approved, construction is expected to begin in 2026.

FortisBC’s Okanagan Capacity Mitigation Project is counter to our climate commitments, expensive, unnecessary, dangerous and should not be approved.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.