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China signs first long-term contract for Canadian LNG

17/07/2019
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Canadian company FortisBC have signed the country’s first agreement for long-term supply of LNG with China.

FortisBC's Tilbury plant will export 53,000 tonnes of LNG to China by 2021
(Image via FortisBC)

The binding supply agreement will commit FortisBC to 53,000 tonnes of liquified natural gas from its facility in Tilbury, British Columbia over two years.

The company has been supplying small-scale cargoes on a spot basis to China since 2017, but this is the first time any firm in Canada has secured an agreement for regular deliveries.

“The announcement of an LNG contract at Tilbury is an encouraging step for Canada’s LNG export industry,” said Amarjeet Sohi, Canada’s Minister of Natural Resources in a statement.

It’s expected that this will open up the opportunity for much larger deals to be made between the two nations. Royal Dutch Shell, Chevron and Pacific Oil & Gas are all planning export terminals in British Columbia that are thought to be targeting Asian buyers. 

With demand for LNG growing in the Far East, and the relative proximity of British Columbia,  it’s thought that up to 24 million tonnes per year could soon be exported from the area, creating opportunities throughout Canada.

“There is strong demand for Canadian LNG in China and this is an exciting time to be working in the industry here in B.C,” said Douglas Stout, vice president of market development at FortisBC.

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China signs first long-term contract for Canadian LNG - Time to read 2 min
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