FortisBC, the owner and operator of the only two LNG facilities in British Columbia, recently received approval from the BC Utilities Commission to modify natural gas rates.
Dennis Swanson , vice president of energy supply, FortisBC said that natural gas prices have increased since spring 2016 due to a hotter-than-normal summer in Canada and the United States which resulted in a larger demand for electricity.
The demand, in combination with a decline in natural gas production, has resulted in the price increase over the past few months, Swanson said.
However, despite the recent rise, natural gas prices are still near their lowest levels in a decade.
Every three months, FortisBC reviews natural gas and propane cost of gas rates with the BCUC, and the recent revision will see an increase in the cost of gas rate from $1.141/GJ to $2.050/GJ.
FortisBC uses LNG to supplement the gas supply during peak demand periods. The company operates an LNG facility on Tilbury Island in Delta, B.C. and the Mt. Hayes facility on Vancouver Island.
LNG World News Staff