Terasen Gas Applies to Sell LNG as Cleaner, Greener Transportation Fuel Solution

Terasen Gas has applied to the British Columbia Utilities Commission for approval to sell liquefied natural gas (LNG) as a transportation fuel source for fleet vehicles.

If approved, the proposed rate schedule will help customers find solutions to manage transportation costs, reduce emissions, optimize existing company assets and support and advance the provincial government’s Energy Plan.

“This is an example of using a traditional energy source in a new way to take advantage of the existing natural gas system,” said Doug Stout, Vice President of Marketing and Business Development, Terasen Gas. “Our proposal ties in with government policy and initiatives to use available energy more efficiently, and to reduce greenhouse gas emissions in the province.”

As a transportation fuel, LNG will result in approximately 20 per cent less carbon dioxide and 50 per cent less nitrous oxide emissions than diesel. Using LNG as a fuel source also provides cost savings to fleet operators, as LNG is approximately 30 per cent less expensive than diesel.

Terasen Gas believes an approved rate schedule will provide assurance of supply and sales cost certainty to fleet vehicle and LNG refueling station owner-operators, thereby enabling the market to develop. LNG sales would originate from the company’s Tilbury LNG storage facility in Delta, complementing its existing usage.

An approved rate schedule supports the B.C. government’s Request for Expressions of Interest in an LNG Port Container Truck Demonstration Program at Port Metro Vancouver.

If approved, the application will also support Wastech Service’s plan to convert its fleet to LNG trucks for hauling solid waste from Vancouver to Cache Creek’s landfill site.

“Terasen has a leadership role to play in order to facilitate the development of LNG as a transportation fuel in B.C.,” said Stout. “As a primary energy provider in the province, Terasen is constantly seeking ways to encourage the use of an abundant energy source that is safe, clean, reliable, and a foundational energy form that will assist us in reaching our environmental goals.”

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