British Columbia to Increasing Market for LNG and RNG Fuel

The Government of British Columbia is taking action under the Climate Leadership Plan to support investments by natural gas utilities that will increase the use of LNG and renewable natural gas (RNG) in the transportation, marine and other sectors and reduce greenhouse gas (GHG) emissions.

“We’re working with utilities to stimulate the use of LNG as a marine fuel in large, ocean-going ships, and to increase the supply and use of renewable natural gas,” said Energy and Mines Minister Bill Bennett. “Building the market for B.C.’s abundant supplies of natural gas offers the opportunity to achieve significant GHG emissions reductions and supports jobs and economic opportunities in British Columbia’s natural gas sector.”

Amendments to the Greenhouse Gas Reduction Regulation (GGRR) under the Clean Energy Act will enable utilities to increase incentives provided to shipping companies for the conversion of vessels to run on LNG, invest in LNG bunkering infrastructure, and increase the supply and use of RNG.

Amendments to the GGRR will allow utilities to double the incentives available to convert vehicles and marine vessels to natural gas when the new incentives go towards vehicles using 100 percent RNG, and enable utilities to recover the costs of acquiring and distributing RNG in rates.

“We are creating market opportunities for British Columbia’s natural gas sector, offering utilities flexibility to create new incentive programs so we can continue to build a strong economy and a cleaner future,” said Deputy Premier and Minister of Natural Gas Development Rich Coleman.

Converting just one ocean-going tanker, cruise ship, or container ship to run on LNG instead of heavy fuel oil will reduce GHG emissions by about 93,500 tons per year, equivalent to taking over 19,800 vehicles off the road. Utility investments in LNG fueling infrastructure will help establish B.C. as a marine bunkering center on the west coast capable of providing LNG to an increasing number of LNG vessels. Increased use of RNG could result in up to 450,000 tons of GHG reductions per year in B.C., and will also help build the market for biogas, providing economic opportunities for local governments and farming and forestry operations.

The GGRR was introduced in 2012 and already allows utilities to provide incentives for compressed natural gas and LNG in the transportation and marine sectors to reduce GHG emissions. The amendments increase the allowed expenditure limits and expand coverage of the regulation to include investments related to RNG.

To view the Climate Leadership Plan, click here.