By Robert Skinner | Delta City News | August 15, 2026

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One of the largest industrial investments in Delta's recent history has just taken a major step forward — and much of it will happen largely out of sight of most Delta residents.

The B.C. government has cleared a major regulatory hurdle allowing FortisBC to advance Phase 1B of its Tilbury LNG Facility expansion, representing an investment of up to $2.2 billion at the company's long-established Tilbury Island operation.

For Delta, this is much more than another industrial construction project.

What Has Actually Been Approved?

On July 24, the Province issued an Order in Council establishing a regulatory framework that allows FortisBC to move Phase 1B forward.

The expansion is designed to increase the amount of liquefied natural gas produced at Tilbury, with a significant focus on supplying LNG as marine fuel to vessels using the Port of Vancouver and shipping routes along the West Coast and across the Pacific.

Construction has not started yet.

The project remains subject to additional regulatory approvals and permitting. If those proceed as anticipated, construction could begin as early as mid-2027, with the expanded facility potentially entering service in 2031.

The Numbers Are Significant

The Province estimates Phase 1B could generate:

• More than $800 million in GDP during construction.
• An average of approximately 1,100 jobs each year for four years during construction.
• Approximately $260 million in tax revenue.
• As much as $15 million to $20 million annually in natural-gas royalties to the Province.

Those numbers put the scale of the Tilbury development into perspective.

For Delta businesses, four years of major construction could also mean opportunities extending well beyond the LNG facility itself — including trades, engineering, transportation, equipment, accommodation, food services and other suppliers.

Musqueam Could Become an Owner

There is another significant component.

The provincial framework enables Musqueam Indian Band to acquire an ownership interest in Phase 1B through a partnership with FortisBC.

FortisBC and Musqueam have been working together on the future development of Tilbury since signing an agreement in 2022.

If completed, the equity arrangement would add an important Indigenous ownership component to one of Delta's largest infrastructure investments.

Why Marine Fuel Matters

FortisBC sees a growing market for LNG as the international shipping industry looks for alternatives to traditional petroleum-based marine fuels.

Tilbury already produces LNG for transportation, shipping and overseas markets. The proposed expansion would substantially increase its ability to supply marine customers.

That also connects Tilbury more closely to another major piece of Fraser River infrastructure: the approved Tilbury Marine Jetty, designed to allow vessels to receive LNG directly from the facility.

Together, the LNG facility and marine infrastructure could position Delta as an increasingly important West Coast marine-energy hub.

Not Everyone Supports the Expansion

The project is not without controversy.

Environmental impacts, greenhouse-gas emissions and LNG safety have generated opposition and concern, particularly from communities across the Fraser River in Richmond.

Richmond-Steveston MLA Kelly Greene publicly expressed disappointment following the July announcement, citing safety concerns raised by constituents. She also acknowledged that emergency shutdown systems, independent on-site fire-response systems and other safety measures are planned.

Those concerns will remain part of the discussion as the project moves toward construction.

Tilbury's Importance Keeps Growing

For many Delta residents, Tilbury remains the industrial area they pass on River Road or see across the Fraser.

Economically, however, something much larger is happening.

Between industrial development, Fraser River transportation, Canada's Pacific Gateway and now potentially billions of dollars in new energy infrastructure, Tilbury is becoming an increasingly important part of Delta's economic identity.

A project worth up to $2.2 billion reinforces that reality.

And if construction begins in 2027 as contemplated, Delta businesses may want to start paying attention well before the first major equipment arrives.

Robert Skinner - Publisher

Delta City News — Licensed Partner of the WBN News Network

Robert is a Ladner-based business systems developer and Publisher of Delta City News. Connect with Robert on: https://www.linkedin.com/in/rlskinner/

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Sources: Province of British Columbia; FortisBC; Fortis Inc.; B.C. Environmental Assessment Office.

#Delta City News #Delta BC #Tilbury #FortisBC #LNG #Delta Business #Economic Development #Port of Vancouver #Fraser River #Marine Industry