A natural gas pipeline expansion planned for the Okanagan has been shut down by the British Columbia Utilities Commission (BCUC).
The project included the construction, installation, and operation of approximately 30 kilometers of new pipeline on the east side of Okanagan Lake from Penticton to near Chute Lake.
In its application, FortisBC stated that the expansion is needed to meet its forecast increase in demand for natural gas in the Okanagan region due to population growth.
The company expects that it will be unable to meet growing demand with existing infrastructure as early as the winter of 2026-2027.
A Dec. 22 statement from the BCUC says the application for the $327 million Okanagan Capacity Upgrade project was denied because it determined “the project was not necessary for public convenience or in the public interest.”
“We have received and are reviewing the BCUC’s decision, but we are disappointed that our application to develop this important piece of infrastructure has been denied,” reads a statement from FortisBC. “The Okanagan Capacity Upgrade project is required to meet peak energy demand in the Okanagan region, which occurs during colder winter months when customers rely on gas to heat their homes and businesses.”
The BCUC also found the application did not consider the possibility that demand for natural gas in the Okanagan region could flatten or decrease over the next 20 years.
It cited, in part, the province’s CleanBC Roadmap commitments and building and energy step code impacts as some of the reasons.
“FortisBC’s infrastructure is vital to the delivery of renewable and low-carbon gases, which are critical to the province’s ability to meet its CleanBC targets,” the FortisBC statement reads.
The BCUC is also reviewing FortisBC’s application that seeks approval to provide renewable gas service to new customers, which could also impact expected demand growth.
The company has been directed to examine other short-term solutions and file a mitigation plan with the BCUC by the end of July 2024.
Editor note: This story has been corrected from an earlier version to clarity statements made by the BCUC and FortisBC.
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